Govt to spend GHC1.4bn on 53 collapsed fund management companies - Minister

The Finance Minister Ken Ofori-Atta has disclosed the government will spend an amount of GHc1.4 billion on investors in the collapsed fund managers brouhaha.

Delivering the 2020 budget statement in parliament on Wednesday, the minister said the government’s decision is to preserve the investments of over 77,000 retail investors and over 4,700 institutional investors.

The Securities and Exchange Commission (SEC) last week revoked the licenses of some 53 fund management companies over several regulatory breaches.

SEC has listed branches of the Consolidated Bank (CBG) as the bank for validation of claims by affected customers.

In a statement issued on Wednesday, the capital market regulator the designated CBG branches will from November 18, 2019, open to receive from clients of the affected FMCs, evidence of investment claims such as investment certificates, account statements, receipts and other relevant documentation for validation.

“The offices of the affected FMCs will remain closed until further notice. We will issue further notice on commencement of payment to investors whose claims have been validated,” the statement added.