The Coalition of Aggrieved Customers of the 50 Collapsed Fund Management Companies has welcomed the government’s directive to the Securities and Exchange Commission, for a partial bailout to be provided to affected customers of companies that are not under official liquidation.

In a press statement released on Wednesday, the SEC stated that government had authorized a partial payment of up to GHS50,000 to all customers of the remaining 27 collapsed Fund Management Companies whose monies were locked up.

Speaking to Citi Business News, Secretary of the Coalition, Joseph Aryeetey, said government needs to go a step further to simplify the payment process and also ensure that persons who urgently need more money are given special attention.

“It looks like the government and the SEC have listened to our concerns, but it’s coming too late as we have lost over 360 members due to this issue. You will agree with me that we don’t need to continue in a manner that will lead to us losing more lives as a result of this. Government needs to review its strategy to ensure that people who are in real need will be met at their point of need. I think that is of a major concern to us.”

“We are also saying that the process that leads to payment as captured in the press release is too laborious. SEC can simplify the process further, so that by the end of November we can begin receiving payments. And this we believe is a fair deal if indeed they are sincere with the kind of support they want to give customers,” he added.

Customers to receive up to GHS50,000 

The SEC in a statement announced that government had authorised a partial payment of up to GHS50,000 to all customers of the remaining defunct Fund Management Companies whose monies were locked up.

This follows an earlier directive by government to pay customers whose claims were validated.

A statement issued by the Securities and Exchange Commission on Wednesday, November 18, 2020, said the customers will be paid while the court process on the liquidation petition and other matters continue.

“The decision to make this partial payment is predicated on Government’s commitment to protect its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the COVID-19 pandemic,” the statement said.

“The Securities and Exchange Commission (SEC), acting within its mandate of protecting investors and the integrity of the market, wishes to announce the outcome of its deliberations with Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed Fund Management Companies.”