SEC gets approval for GH¢5.5bn to complete bailout programme

SEC gets approval for GH¢5.5bn to complete bailout programme

SEC gets approval for GH¢5.5bn to complete bailout programme

The Securities and Exchange Commission is set to complete the asset management bailout programme, following the approval of GH¢5.5 billion by Parliament.

In a statement, the SEC commended the government for supporting the Asset Management Cleanup Exercise.

“This provision further demonstrates government profound commitment to strengthen the Ghanaian securities market to realize its full potential as an essential driver for economic growth and development and making it an attractive investment hub for domestic and international observers”.

The SEC therefore appealed to all affected clients to patiently follow through all relevant processes to redeem their claims and rely on information provided by the SEC and the Official Liquidator, adding the SEC will proactively update customers on the full status of the bailout implementation programme.

It also assured all affected clients that the government has made provisions to cover all validated claims with the recent additional allocation in the 2021 National Budget.

Actual payments made under the Partial Bailout Programme as of 31st March, 2021 amounted GH¢995 million, representing 81% of total claimants and 83% of the total corresponding partial bailout value.

The number of clients who have been fully settled under the programme amounts to a total of 42,945.

Presently, there are less than a quarter of liquidations petitions outstanding.

Validation claims

As of 31st March, 2021, out of a total of 100,898 claims received against 47 companies valued at GH¢11.70 billion, a total 100,700 claims valued at GH¢8.314 billion have so far been validated.

This means that an estimated 99.8% of the total claims filed have been validated, with an almost 30% found to be unwarranted.

The full bailout programme has so far been executed in three phases.

Update of liquidations orders

The courts has so far granted 37 liquidation orders to the Official Liquidator as of 31st March, 2021, out of the 47 Fund Management Companies with claims from investors after the revocation.

Companies with liquidation orders yet to have creditors and class meetings are FirstBanc Financial Services, Procap Finance Company and Strategic Hedge Capital Limited.

The remaining 10 companies that have their liquidation petitions currently pending before the High Court for hearing including Apex Capital Partners Limited and Beige Capital Asset Management Limited.