SEC pays GHC768.26 million to claimants

The Securities and Exchange Commission (SEC) says this represents 83% of the total number of claimants paid out of the signups done

The Securities and Exchange Commission (SEC) has paid GHC768.26million to 6,916 claimants who signed up for the full bailout programme as of 31 March 2021.

This represents 83% of the total number of claimants paid out of the signups done and 78% of the total value paid out of examined claims.

Reverend Daniel Ogbarmey Tetteh, Director General of SEC, said 6,349 individuals were paid GHC409.29 million, while 562 corporates and institutions received GHC358.68 million.

Rev Ogbarmey was speaking at a media briefing to update the media and clients of defunct fund management companies (FMC) on the bailout implementation programme.

He said for the partial bailout, a total of 64,685 out of 89,233 claimants had signed up for the programme by executing the assignment and subscription agreement as of 31 March 2021, representing 72%.

The Director General said the actual payments made under the partial bailout programme as of 31 March 2021 stood at GHC995 million to 52,264 claimants, representing 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 is around a total of 42,945 claimants as of 31 March 2021,” he added.

So far, 51,143 Individuals were paid an amount of GHC959,57 million, while 1,121 corporates and institutions were paid an amount of GHC34.93 million.

He said there were less than a quarter of the liquidation petitions outstanding and commended the official liquidator and the courts.

Rev Ogbarmey said the next update would be provided at the end of the second quarter.

“For the claimants with validated claims in excess of the GHC50,000 threshold, please be assured that the full bailout package will be triggered when the liquidation orders are granted,” he said.

He urged the investors to avoid the use of middlemen or facilitators to secure payout of the bailout.

Rev Ogbarmey, assured all affected clients that the government had 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 no need for any affected client to panic because of the protracted court liquidation process,” he added.

Rev Ogbarmey expressed appreciation to the government for the provision of GHC5.5 billion in the 2021 National Budget Statement, which was recently approved by Parliament to complete the Asset Management Industry Cleanup Exercise.

The Director General said the provision further demonstrated the government’s profound commitment to strengthening the securities market in realising its potential as an essential driver for economic growth and development.

He appealed to all affected clients to patiently follow through with all relevant processes to redeem their claims and to rely only on information provided by the SEC and the official liquidator.

The courts had granted 37 liquidation orders to the official liquidator – The Registrar General as of 31 March 2021, out of the 47 FMCs with claims from investors after the revocation.

Virtual creditor and class meetings were held by the official liquidator for clients of 34 of these companies.

The remaining 10 companies have their liquidation petitions currently pending before the High Court for hearing.

As of 31 March 2021, out of a total of 100,898 claims received against 47 companies valued at GHC11.70 billion, a total of 100,700 claims valued at GHC8.314 billion have so far been validated.

This means that an estimated 99.8% of the total claims filed were validated with almost 30% found to be unwarranted.

Claimants who disagree with validated amounts are engaging the agent of the SEC for further examination.

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