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The Official Liquidator of Fund Management Companies, the Registrar General has begun to liquidate the rescue funds of the first group of investors.
This follows the successful validation of claims and the completion of the Registrar General’s creditor meetings with investors from the top 20 fund management companies.
This was contained in a document signed by the Registrar General, Jemima Oware.
“These investors were clients of the 20 Fund Management Companies for which the Official Liquidator obtained and registered Liquidation Orders, and whose claims were also validated by PWC, External Auditors of the Official Liquidator,” the statement read.
According to the statement, the 170 investors who had submitted redemption requests as of Wednesday, October 7, 2020, constitute the first installment of beneficiaries.
Ms. Jemima Oware noted that the process will continue while the court grants the liquidation orders and the creditors’ claims are validated.
In the meantime, all investors who have gone through validation and received their unique claim IDs are encouraged to visit bailoutapp.rgd.gov.gh to review their account settings.
This is because the application on the www.rqd.qov.qh website is also down as a result of a temporary technical challenge at the National Information Technology Authority (NlTA).
The constitution of the Fund paves the way to access claims from more than 2,850 investors for ¢ 563.65 million.
These payments are covered by the government rescue package for clients of liquidated fund management companies who choose to accept this option2.
The rescue program is being implemented through a special purpose entity, Amalgamated Mutual Fund Plc (The AM Fund) which was established and managed by GCB Capital Limited.
Background
The Securities and Exchange Commission in November 2019 revoked the licenses of 53 fund management firms for failing to operate in accordance with best practices and industry standards, among others.
This came at a time when some fund management companies were struggling to resolve their investors’ claims due to liquidity problems.
The SEC began discussions with the government to find a suitable bailout program for investors whose funds were blocked.
Subsequently, the Registrar General was appointed as Official Liquidator of the disappeared Fund Management Companies.
Subsequently, some of the liquidated firms sought to challenge the process established by the SEC.
