SEC requires GHC5.5 billion to settle investors - Parliamentary Affairs Minister

Government is working to complete the bailout of the asset management industry through the provision of a package for investors of the failed Asset Management Companies (AMCs).

“I am happy to announce that, the resolution of the banking industry has been completed.”

Mr. Osei Kyei-Mensah-Bonsu, Minister for Parliamentary Affairs and Caretaker Finance Minister, presenting the 2021 Budget in Parliament on Friday, said out of an estimated amount of GH¢8.5 billion to help pay investors of the failed AMCs, Parliament approved an amount of GH¢3.1 billion in the 2020 Mid-Year Budget.

“At the end of December 2020, Government had provided an amount of GH¢3.4 billion for the payment of validated claims to investors of 30 AMCs for which liquidation orders were obtained.

“This amount was in a combination of a 3-year marketable bond of GH¢2.5 billion and a 5-year zero coupon bond of GH¢915 million.”

Mr. Kyei-Mensah-Bonsu said for the Securities and Exchange Commission to fully settle investors of the remaining 17 AMCs, an amount of GH¢5.5 billion (1.3% of GDP) was required.

“For this reason, we have come to this august House once again to seek for your approval to raise an amount of GH¢5.5 billion in 2021 to complete the asset management industry bailout, including Gold Coast Fund Management Ltd (now Blackshield Capital Management), First Banc Financial Services Limited, Liberty Asset Management, Beige Capital Asset Management Ltd, Ideal Capital Partners Ltd, and Frontline Capital Advisors Ltd.”