November 30, 2020

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Gov’t Approves Bailout Package For Customers Of Failed Microfinance Companies

2 min read

Ken Ofori Atta

The President Nana Akufo-Addo’s Government has approved a partial bailout package for customers of the remaining failed fund management companies.

The Securities and Exchange Commission (SEC) made this known in a press release.

According to the release, the partial bailout involves a partial payment of Ghc 50,000 to all customers of the remaining affected fund management companies while the court processs on the liquidation petition and other matters continue.

It stated that “the decision to make this partial payment is predicated on Government’s commitment to protect its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid19 pandemic.”

The release added that “this intervention has become necessary at this stage because liquidation petitions for the remaining affected fund management companies like Gold Coast Fund Management Limited are contesting the liquidation petition and as a result, have filed a stay of proceedings until its application for judicial review of the decision of the Administrative Hearings Committee has been heard.”

It noted that “there is the possibility for these legal processes to take some time and, therefore, extend the pain and suffering of the affected investors hence this decision by government.”

The release indicated that “the partial bailout shall be channeled through the Amalgamated Fund Ghana Limited, the same Special Purpose Vehicle (SPV) being used to pay the clients of the Fund Management companies currently under official liquidation.”

It said Amalgamated Fund Ghana is managed by GCB Capital Limited, a subsidiary of GCB Bank Limited, adding that the SEC’s agent for receiving and validating claims is PwC.

By Melvin Tarlue

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