Ghana’s financial crisis is far from over as investors of collapsed fund management firms are yet to receive their locked-up investments, totaling about GHS12 billion, MyNewsGh.com gathers.
This follows the collapse of the about 53 fund managers who were administering and managing the funds on behalf of the investors.
The funds are different from the over GHS16 billion spent by the government to settle depositors in the banking, savings and loans as well as the microfinance sectors.
Initially the total assets-under-management was GHS8 billion. But after validation of the investments, the investments (funds) surprisingly jumped to about GHS12 billion.
This means some of the fund managers might have under declared funds invested by the retail and institutional investors, a situation in which the Securities and Exchange Commission, headed by Rev. Daniel Ogbamey Tetteh is not taking issues kindly.
It is unclear when the locked up funds will be released by the Ministry of Finance through the Bank of Ghana for payments to be done.
The several thousands of investors are believed to be reeling under severe pain following their inability to retrieve their investments.
The Securities and Exchange Commission in November 2019 revoked the licenses of 53 fund management companies.
The affected companies had become insolvent, as the SEC said the affected companies failed to return client funds which remained locked up in contravention of the investment rules.
The companies were All Time Capital, Blackshield Capital Management (formerly Gold Coast Fund Management), Frontline Capital Advisors, Unisecurities Limited and Ideal Capital Partners.
Others were Capital Limited, Energy Investments Limited, Fromfrom Capital Limited, Frontline Capital Advisors Limited, FirstBanc Financial Services Limited, Galaxy Capital Limited and Gold Rock Capital Management Limited.
Last week, the government said it had paid GHS5.66 billion to depositors of collapsed Savings and Loans Company and Microfinance Companies.