Government Releases GHS 1.5 Billion to Bailout Affected Investors

By: Doreen Boamah Darko

The Securities and Exchange Commission (SEC) has announced that the government has approved the release of GHS 1.5 billion to continue the bailout program for affected investors of failed fund management companies. This move is aimed at providing further financial relief to those impacted by the revocation of licenses in November 2019.

The bailout program, which has already seen the release of GHS 4.46 billion, has paid out a total of 84,202 investor claims, with 69,445 (approximately 82%) being fully settled. The additional GHS 1.5 billion will be released in three tranches, commencing with GHS 700 million in August 2024, followed by GHS 400 million each in October and December 2024.

This decision, driven by humanitarian considerations, will benefit investors of Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited, among others. Investors with examined claims who have accepted the government’s bailout package will receive the higher of GHS 50,000 or 15% of their outstanding claims.

The bailout is expected to result in close to 91% of affected investors being fully settled. The Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund), managed by GCB Capital Ltd, will roll out the bailout. A meeting will be held in the coming days to provide guidance for investors on accessing the released funds and the prospects for leaving their claims in the AM Fund to be managed.