Delays in payment to Blackshield customers due to legal action — SEC
The Securities and Exchange Commission (SEC) has said that the delay in payment of bailout funds to some affected customers of Blackshield Fund Management formally known as Gold Coast Fund Management is not due to the refusal of the Ministry of Finance to provide funds.
It explained that the delay was because Blackshield/ Gold Coast was legally contesting the liquidation petition brought by the official liquidator.
In a release in response to the recent picketing of affected customers at the Ministry of Finance, SEC said it would continue to support the official liquidator in pursuing the liquidation petition in court.
It may be recalled that the SEC revoked the licenses of fifty-three (53) Fund Management Companies (FMCs) on November 8, 2019 due to various regulatory breaches.
Following the revocation of the licenses, the SEC took some actions to protect investors.
The actions included the notification of the Registrar of Companies/Registrar General to petition the court for orders to commence the official liquidation of the fifty-three (53) FMCs under the relevant law.
SEC then secured a bailout package for affected clients of the Fund Management Companies from government on two conditions: that liquidation orders are granted by the courts; secondly, validation of claims of claimants should also be completed.
The release said SEC had noted comments seeking a release of GH¢8.6 billion which was purportedly approved by Parliament to settle clients of Blackshield/ Gold Coast, hence the protest at MoF.
“We reiterate that a full bailout has been extended to affected clients of the companies where the liquidation orders have been granted by the courts and a partial bailout in the case where the liquidation petition is pending.
“SEC can confirm that so far,GHS4.6 billion have been paid as follows: GH¢3.1 billion to Amalgamated Fund Tier 1 payments and GH¢1.45 billion assigned to Amalgamated Fund Tier 2 Payments.” the release explained.
It said the disbursement included the partial bailout programme, which entailed the proactive payment of a threshold sum of up to GH¢50,000 to clients of Blackshield/Gold Coast and other companies that had not received winding up orders from the court by October 2020 but whose claims had been validated.
Altogether, 73,541 claims, amounting to GH¢1.34 billion, have been paid to Blackshield/Gold Coast clients in the partial bailout programme.
Out of this amount, a total amount of GH¢757,539,141 have been used to fully settle 61,734 claims of Blackshield/ Gold Coast customers.
SEC said the customers had not been fully covered (full bailout) because of the litigation issues instigated by Blackshield/ Gold Coast which had slowed down the process of obtaining the winding up order from the court by the official liquidator.