Prime News Ghana

Collapsed Fund Management companies : Gov't provides GHS1.5bn as partial support for customers

By Justice Kofi Bimpeh
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The Government of Ghana has provided about 1.5 billion Cedis as partial support for clients of 53 collapsed fund management companies.

An accounting firm, Price Waterhouse coopers which has been appointed by the Registrar General is expected to act as the receiver to help validate claims from the investors.

After the validation, the receiver will then commence part payment of clients of these firms.

According to Joy FM's report, each investor will be paid 20,000 Ghana Cedis and the rest of their investments will be paid later based on what the liquidator secured from the assets of the firms.

SEC after the revocation of the licences disclosed that about ¢8b investments of 81,700 clients, made up of 44,000 institutional customers and 7,700 retail customers are involved.

READ ALSO: We can't be blamed for the collapse of 53 Fund Management companies - SEC

Validation of claims of customers for the collapsed fund management companies is expected to begin this week.

Deputy Director-General for the Securities and Exchange Commission, Paul Ababio made this known in a radio interview.

According to him, these steps are taken to sanitize the industry.

"It's an attempt to really sanitize the industry and to make sure that those who remain are able to operate and also if you have a lot of distress firms you had to implement some of these things, some of them as far back as 2016, 2017 struggled to make payments.

"We will make announcements and we will give people timelines on where they can file their claims, we are putting arrangements in place to ensure that things happen in an orderly manner and there will be the appropriate notifications as to when we progress but the framework is that we will make some reliefs available and that is also part of the reliefs that we are looking at for investors."

READ ALSO: SEC revokes licences of 53 Fund Management companiesÂ