The Securities and Exchange Commission (SEC) has stated that it is not mandated to retrieve debt for struggling Fund Management Companies.
The comment comes after claims by Group Nduom that SEC failed to respond to numerous requests to assist Blackshield Capital Management (formerly Gold Coast Fund Management) to retrieve funds owed them by the various government of Ghana entities.
Group Nduom also stated that SEC failed to review its [Blackshield Plan] to migrate customers into a private-sector solution to Blackshield’s liquidity problem.
Reacting to the comments, Deputy Director-General for SEC Paul Ababio told Francis Abban on the Morning Starr that, “Our role is not debt collection. Our role is to ensure that the industry is behaving properly.”
Mr Ababio confirmed the receipt on the letter to help in the retrieval of government debt but after analyzing the issues, SEC realized the debt was complicated as some of the debt liabilities were borne by the defunct GN Bank.
Also, some of the investment he said was through the Ghana Growth Fund, a subsidiary of Group Nduom which is a private equity vehicle.
According to SEC the complication of the debt made it difficult to use that as security to halt the closure of Blackshield Capital Management which has violated the regulatory rules that set it up.