60% of our investments locked up with gov’t – Gold Coast Fund Management

Management of Gold Coast Fund Management says it is still waiting for some government agencies to settle debts owed them.

According to the investment firm, it has over 60% of its investments locked up in funding government agency projects.

This was revealed by the General Manager in charge of Investor Relations and External Affairs, Benjamin Kofi Afreh, Wednesday night, on Citi TV’s Point of View.

He said amounts owed them by contractors of government agencies including the Ministry of Finance and COCOBOD currently stands at GHC2 billion.

“If you are looking at the principal and accrued interest it is about GHC2 billion that we are expecting government to pay. Not government per se but the government agencies. If you look at the numbers it's over 60%.”

Whiles, it is typically known that fund managers invest in bonds and stocks, Mr Afreh said fund management goes beyond government bonds and stocks, adding that the decision by the firm to invest about 60% of their funds in government contractors was not out of place.

“We are saying that we have well over GHC2 Billion with the government, we invested through the contractors. That is why I am happy that government says they are going to pay. So hopefully the contractors who are indebted to us will get part of the money and we will get the money back. When you invest GHC14 billion and are able to get all of that back with only an outstanding of 2 billion, you cannot say we were imprudent.”

Giving details on customers and the how far they have reached in settling them, Mr Afreh said the Gold Coast Fund Management has 68,000 customers out of which they have been able to settle over 9,000. He added that the remaining customers numbering about 58,000 are owed about GHC3 billion expressing hope that they will be settled soon.

Gold Coast Fund Management now Blackshield Fund Management, which is one of the subsidiaries of the GN Groupe, has been struggling to maintain its operations since one of its other subsidiaries GN Savings and Loans was declared insolvent by the Bank of Ghana.

The announcement by the financial regulator among other things has led to customers of Gold Coast Fund Management demanding for their investments.