SEC pays GH¢1.7 billion of investors locked up cash

The Securities and Exchange Commission (SEC) has paid a total of GH¢1.76 billion (GH¢1,762,767,250.32) to investors who applied for both full and partial bailout programmes as of March 31, 2021.

A total of 59,180 investors received the amount.

It comprises GH¢994.5 million (GH¢994,502,710.52) paid to 52,264 investors under the partial bailout programme and GH¢768.2 million (GH¢768,264,539.80) paid to 6,916 investors under the full bailout programme.

Director-General of SEC, Rev. Daniel Ogbarmey Tetteh who announced this, assured investors not to panic and that they should not resort to middlemen or facilitators to secure payout of the bailout.

Full bailout

Under the full bailout programme, he noted that GH¢768.26 million has been paid as of March 31, 2021, to investors of the 47 defunct FMCs.

This, he said, represents a total of 83% of claimants paid out of total sign-ups done and 78% of the total value paid of examined claims.

According to him, 6,349 individuals were paid GH¢409.29million, while 562 Corporates and Institutions received GH¢358.68million.

He further noted that the variance of outstanding payments was explained by some clients opting not to withdraw claims.

The Director-General of SEC mentioned that the number of claimants who have been fully settled under this programme amounts to 6,916 as of 31 March 2021.

So far, 51,143 Individuals were paid an amount of GH¢959,57million, while 1,121 Corporates and Institutions were paid an amount of GH¢34.93million.

Partial bailout

On the partial bailout programme, he stated that a total of 64,685 claimants have signed up for the programme out of 89,233 claimants.

"This represents 72% of total claimants signed up under the partial bailout programme.

He noted that the actual payments made under the partial bailout programme as of March 31, 2021, amounts to GH¢995 million to claimants.

This, he further said, represents 81 per cent of total claimants and 83 per cent of the total corresponding partial value.

Claims above GH¢50,000

"For claimants with validated claims in excess of GH¢50,000 thresholds, be assured that the full bailout package would be triggered when the liquidation orders are granted.

Rev Ogbarmey expressed appreciation to the government for the provision of GH¢5.5 billion in the 2021 National Budget Statement, which was recently approved by Parliament to complete the Asset Management Industry Cleanup Exercise.

The Director-General said the provision further demonstrated government's profound commitment to strengthening the securities market in realising its potential as an essential driver for economic growth and development.

He appealed to all affected clients to patiently follow through with all relevant processes to redeem their claims and to rely only on information provided by the SEC and the Official Liquidator.

The courts had granted 37 liquidation orders to the Official Liquidator (The Registrar-General) as at March 31, 2021, out of the 47 FMCs with claims from investors after the revocation.

Virtual Creditor and Class meetings were held by the Official Liquidator for clients of 34 of these companies.

The remaining 10 Companies have their liquidation petitions currently pending before the High Court for hearing.

As at March 31, 2021, out of a total of 100,898 claims received against 47 Companies valued at GH¢11.70 billion, a total of 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 were validated with almost 30% found to be unwarranted.

Claimants who disagree with validated amounts are engaging the agent of the SEC for further examination.