Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-03-05 07:39:39
The Minister of State designate at the Ministry of Finance, Abena Osei-Asare, recently disclosed that the government has allocated GH¢4.1 billion to pay the locked up funds of customers of Gold Coast Fund Management Company Limited, which is part of the remaining GH¢8.9 billion locked up funds of Asset Management Companies (AMCs) in the banking sector clean-up exercise. This amount has been budgeted in respect of the AMCs and other financial matters.
However, the release and payment of this amount are contingent on the availability of funds to the government. Osei-Asare emphasized that these numbers are estimates and depend on the revenues that will come in. In previous years, the government budgeted GH¢3.1 billion in 2020 and paid GH¢3.4 billion, while in 2021, they budgeted GH¢5.5 billion but only managed to pay GH¢1.36 billion, based on the availability of funds.
The customers whose locked up funds are yet to be paid are those with investments exceeding GH¢50,000, while those with investments below GH¢50,000 have already received their redemptions. The delay in redeeming the rest of the funds is due to litigation challenges brought against the government for the revocation of license of the AMCs in the banking sector clean-up.
The delay in payments was also a result of ongoing litigation, which had reached its peak, halting the payment process. This led to no allocations in the 2022 and 2023 fiscal years. Mrs. Osei-Asare added that the redemption of investments below GH¢50,000 was done on humanitarian and compassionate grounds following a lawsuit against the government regarding the liquidation of the AMCs.
The allocation of funds was based on validation done by the Security and Exchange Commission, assuring that the government is committed to redeeming the locked up funds of the customers. According to SEC records, there are approximately 28,000 customers left to be settled.
A Committee chaired by Joe Ghartey was formed in response to a petition brought before the House by Bawku Central MP, Mahama Ayariga, on behalf of the customers. Other members of the Committee include Dr. Benjamin Yeboah Sekyere, Kwasi Ameyaw-Cheremeh, Edwin Nii Lante Vanderpuye, Gizella Akushika Tetteh-Agbottui, Dr. Theophilus Acheampong, and Antonio Kesse as technical advisors.
In conclusion, the government has allocated GH¢4.1 billion to pay the locked up funds of customers of Gold Coast Fund Management Company Limited, as part of the remaining funds from the banking sector clean-up exercise. The payment is subject to the availability of funds, and the government remains committed to redeeming the locked up funds of all affected customers.
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