06 May 2021

UPDATE ON BAILOUT IMPLEMENTATION PROGRAMME

The Securities and Exchange Commission (hereinafter referred to as the “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.

The Securities and Exchange Commission (SEC), acting within its mandate of protecting investors and the integrity of the securities market, wishes to update the general public on the implementation of the bailout programme for clients of defunct Fund Management Companies (FMC).

UPDATE ON LIQUIDATION ORDERS:

The courts have granted thirty-seven (37) liquidation orders to the Official Liquidator (The Registrar-General) as of the 31st March 2021, out of the forty-seven (47) Fund Management Companies with claims from investors after the revocation. Virtual Creditor and Class meetings have been held by the Official Liquidator for clients of thirty-four (34) of these companies. Companies with Liquidation Orders yet to have Creditors & Class Meetings are:

  • Firstbanc Financial Services
  • Procap Finance Company
  • Strategic Hedge Capital Limited

The remaining ten (10) companies that have their liquidation petitions currently pending before the High Court for hearing are:

  • Apex Capital Partners Ltd.
  • Beige Capital Asset Management Ltd.
  • Blackshield Capital Management (formerly Gold Coast Fund Management Ltd).
  • Dowjays Investment Ltd.
  • Frontline Capital Advisors Ltd.
  • Kron Capital Ltd.
  • Liberty Asset Management Ltd.
  • Omega Capital Ltd.
  • Universal Capital Mgt. Ltd.
  • Wealth Vision Financial Services Ltd.

VALIDATION OF CLAIMS:

As of the 31st March 2021, out of a total of One Hundred Thousand, Eight Hundred and Ninety-Eight (100,898) claims received against forty-seven (47) companies valued at Eleven billion, Seven Hundred and One million Ghana Cedis (GHS 11.70 billion), a total of One Hundred Thousand, Seven Hundred (100,700) claims valued at Eight billion, Three Hundred and Fourteen million Ghana Cedis (GHS 8.314 billion) have so far been validated. This means that an estimated 99.8% of the total claims filed have been validated with an almost 30% found to be unwarranted. Claimants who disagree with validated amounts are engaging the agent of the SEC for further examination.

 

FULL BAILOUT PROGRAMME:

A total of Eight Thousand, Three Hundred and Seventy (8,370) claimants out of a total of Eleven Thousand, Six Hundred and Sixty-Five (11,665) claimants have signed up for the full bailout programme as of the 31st March 2021. The full bailout programme has so far been executed over three phases:

  • Phase 1 (As at end of October 2020): The total value of claims that were considered for this first phase of the Bailout Program was One billion and Seven Hundred million Ghana Cedis (GHS1.7 billion) from the twenty (20) FMCs whose Liquidation Orders had been granted by the Courts and gazetted. Out of the total value claims of claims in phase one, One billion and One Hundred million Ghana Cedis (GHS 1.1billion)  of the claims were validated accordingly.
  • Phase 2 (As at end of November 2020): The total value of claims considered for the second phase of the Bailout Program amounted to One billion and Eight Hundred million (GHS 1.8 billion) from the eight (8) FMCs whose Liquidation Orders had been granted by the Courts and gazetted. Out of these claims, One billion Ghana Cedis (GHS 1.06 billion) of these claims were validated accordingly.
  • Phase 3 (As at end of March 2021): The total value of claims being considered for the current phase of the full Bailout Programme is Six Hundred and Thirty-Seven million Ghana Cedis (GHS 637 million), from six (6) FMCs whose Liquidation Orders have been granted by the Courts and gazetted. Out of these claims, Five Hundred and Fifty-Six million Ghana Cedis (GHS 556 million) have been validated.

Table 1: Summary of Key Claims’ Values

Description Phase 1 Phase 2 Phase 3
Total value of claims  (Ghs’m) 1.7 bn 1.8 bn 637 m
Total value of claims validated   (Ghs’m) 1.1 bn 1.06 bn 556 m
# of FMCs 20 8 6

 

Table 2: FMCs Whose Liquidation Orders Have Been Secured by Phases

Phase 1 Phase 2 Phase 3
FromFrom Capital Limited QFS Securities Limited Ideal Capital Partners Limited
Nesst Capital Limited Ultimate Trust Fund Management Limited Kripa Capital Limited
Brooks Asset Management Limited Cambridge Capital Advisors Limited Mcottley Capital Limited
Mak Asset Management Limited Corporate Hills Investment Limited Utrak Capital Management Limited
Mec-Ellis Investments (Ghana) Limited Unisecurities Ghana Limited Global Investment Bankers Limited
Alpha Capital Securities Limited EM Capital Limited Goldstreet Fund Management Limited
Man Capital Partners Limited Heritage Securities Limited
All-Time Capital Limited SGL Royal Kapita Limited
Mutual Integrity Limited
InterMarket Asset Management Limited
Sirius Capital Limited
Weston Capital Limited
Standard Securities Limited
Galaxy Capital Limited
Kamaag Kapital Limited
Nordea Capital Limited
Nickel Keynesbury Limited
Axe Capital Advisors Limited
Supreme Trust Capital Limited
Tikowire Capital Limited

Out of the total claimants who have signed up for the full Bailout Programme, a total amount of Seven Hundred and Sixty-Eight million Ghana cedis (GHS 768.26 million) has been paid as of the 31st March 2021. This represents a total of 83% of total claimants paid out of total signups done and 78% of the total value paid of examined claims. The variance of outstanding payments is explained by some clients opting not to withdraw their funds. The number of claimants who have been fully settled under this programme amounts to a total of Six Thousand, Nine Hundred, and Sixteen (6,916)  clients as of 31st March 2021. The profile of claimants is depicted below:

Client Type # Claimants Value (GHS)
Individuals 6349 409,293,533.91
Corporates
& Institutions
562 358,683,283.86
Total 6,916 768,264,539.80

PARTIAL BAILOUT PROGRAMME:

  • A total of Sixty-Four Thousand Six Hundred and Eight-Five (64,685) claimants have signed up for the programme by executing the assignment and subscription agreement as of the 31st March 2021, out of a total of Eighty-Nine Thousand, Two Hundred and Thirty-Three (89,233)   This represents 72% of total claimants signed up under the partial bailout programme.
  • The total value of the claimants who have signed up for the Partial Bailout as of the 31st March 2021 amounted to Three billion, Five Hundred million Ghana Cedis (GHS 3.5 billion). The corresponding partial bailout amount for these sign-ups is One billion, One Hundred, And Ninety-Six million Ghana Cedis (GHS 1.196 billion).
  • Actual payments made under the Partial Bailout Programme as of the 31st March 2021 amounts to Nine Hundred and Ninety-Five million Ghana cedis (GHS 995 million) to Fifty-Two Thousand, Two Hundred and Sixty-Four (52,264) claimants. This represents 81% of total claimants and 83% of the total corresponding partial bailout value. The number of clients who have been fully settled under this programme amounts to a total of Forty-Two Thousand, Nine Hundred, and Forty-Five (42,945) claimants as of 31st March 2021. The profile of claimants paid is depicted below:
Client Type # Claimants Value (GHS)
Individuals 51,143 959,572,704.23
Corporates

& Institutions

1,121 34,930,006.29
Total 52,264 994,502,710.52

 

CONCLUDING STATEMENTS

  • There are less than a quarter of the liquidation petitions outstanding, thanks to the hard work of the Official Liquidator and the honorable courts. The next update will be provided at the end of the second quarter.
  • The roll-out of the full and partial bailout packages has been quite successful as detailed above. The partial bailout authorized by the Government has resulted in about 66% of claimants (all categories) being fully paid. For the claimants with validated claims in excess of the GHS50,000 threshold, please be assured that the full bailout package would be triggered when the liquidation orders are granted. There is thus no need to resort to any middlemen or facilitators to secure payout of the bailout.
  • The SEC wishes to assure all affected clients that the Government has made provision to cover all validated claims with the recent additional allocation in the 2021 National Budget Statement to support the clean-up exercise in the asset management industry. There is hence no need for any affected client to panic because of the protracted court liquidation process.
  • All affected customers who are yet to receive a claim ID to sign on to the Partial Bailout Programme should please contact the SEC’s Agent (PWC) via gh_fundmanagers@pwc.com or call 0242439453 for assistance.
  • For customers who have a claim ID but are yet to receive a text message from GCB Capital regarding the bank details, kindly contact amfund@gcb.com or 0552564472 for support.
  • Clients and members of the general public may also make requests for further information by calling the dedicated bailout call centre number on 0242439453 or by visiting bailout.rgd.gov.gh for the latest updates on the bailout situation.

 

The SEC wishes to express its appreciation to the Government for the provision of Five billion and Five Hundred million Ghana Cedis (GHS 5.5 billion) in the 2021 National Budget Statement which was recently approved by the Parliament of Ghana to complete the Asset Management Industry Cleanup Exercise. This provision further demonstrates the Government’s profound commitment to strengthening the Ghanaian Securities Market in realising its potential as an essential driver for economic growth and development and making it an attractive investment hub for domestic and international investors.

The SEC, therefore, wishes to appeal to all affected clients to patiently follow through with all relevant processes to redeem their claims and rely only on information provided by the SEC and the Official Liquidator. The SEC will proactively update customers on the full status of the bailout implementation program.

This Press Release is issued pursuant to section 208(c) of the Securities Industry Act, 2016 (Act 929).

By Order of the

SECURITIES AND EXCHANGE COMMISSION

DATED: 30th April 2021

 

About SEC:

The Securities and Exchange Commission (SEC) Ghana is the apex regulatory body of the Securities Industry in Ghana set up by the Securities Industry Act, 2016 (Act 929) to regulate and promote the growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.

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