The Official Liquidator (OL) has gazetted eight additional fund management companies (FMCs) with two others going through the winding up and gazetting process.
These are out of the 54 whose licenses the Securities and Exchange Commission (SEC) revoked as the second batch of beneficiaries of the government’s bailout package.
The Registrar-General and OL, Mrs. Jemima Oware, announced this at a meeting dubbed: ‘Time with the commissioner’ in Accra yesterday.
She explained that one of the companies, UniSecurities Ghana Ltd, had, however, submitted an injunction letter from its lawyers preventing her from proceeding with the process.
“For UniSecurities, even after the order had been granted and I had actually gazetted the order, I received an appeal from its lawyers against the order,” she disclosed, adding that the lawyers requested to set a date for their documents to be looked at and agreed upon at the Appeals Court.
“But I have already gazetted the order and so unless I get another application bringing an injunction to restrain me from continuing, I can’t stop,” Mrs. Oware said, adding that she was going ahead with the creditors’ meeting for the eight defunct companies.
She said the first virtual creditors’ meetings for phase two would be held on November 25 and 26, this year.
For the other two companies, she said, their documents were currently going through the process of being gazetted before a notice to creditors to submit proof of claims would be made, “and this will then be followed by the notice for the first creditor meetings and class meetings to be held”.
The OL, however, gave an assurance that every effort would be made to try and add the two to the 10 companies.
Their gazetting completes their journeys as bodies corporate, having been duly wounded up by the OL.
Those gazetted include UniSecurities Gh Ltd, QFS Securities Ltd, Ultimate Trust Fund Ltd, and SGL Royal Kapital Ltd.
The rest are Corporate Hills Investment Ltd, Heritage Securities Ltd, EM Capital Partners Ltd, and Cambridge Capital Advisors Ltd.
The two from Kumasi that is still going through gazetting are Global Investments Ltd and Goldstreet Fund Management Ltd.
She said the challenges she had faced in the liquidation process included complex and bureaucratic court processes, difficulty in locating some companies, incorrect contact details, and the fact that cases before other judges had to be moved to a dedicated judge.
Mrs. Oware said it was welcoming news that the government had authorized the partial bailout of GH¢50,000 for all remaining customers of the revoked FMCs, pending the outcome of the liquidation petitions.
“The OL is very determined to ensure that all investors and creditors receive their funds once we receive the winding-up order,” she said and gave an assurance that the office would expedite the process to bring much-needed relief to those affected.
She, however, said the bailout package being rolled out by the government was not compulsory, as claimants had the choice to accept to be part or to decline.
Touching on the bailout structure, the Director-General of the SEC, Rev. Daniel Ogbamey-Tetteh, explained that the bailout package was being offered to investors of the FMCs via a special purpose vehicle (SPV), which should be capitalized by the government in the form of short and long-term bonds.
“Investors (claimants) who choose to participate in the bailout program shall exchange their interests in the defunct FMCs for shares in the SPV. Allocations will be based on validated claims.
“Claimants shall receive a portion of their validated claims in tier one shares of the SPV and a portion in the tier two shares of the SPV,” he explained.
Touching on the allocation formula, he explained that the beneficiaries were put into six categories, with all individuals below 60 years getting up to GH¢70,000 or 20 percent of their validated claims in tier one.
All pensioners of 60 years and above, as well as schools, faith-based organizations, and hospitals, he said, would receive all their validated claims in tier one.
Rev. Ogbamey-Tetteh explained that all financial institutions, associations, welfare institutions, credit unions, and unions would receive 50 percent of their validated claims, while all other claimants would get 20 percent of their validated claims in tier one.
Explaining how claimants could assess their tier two funds, the Managing Director of the GCB Capital Ltd, Kofi El-Awuku, said they had up to five years to receive all their funds, even though there was an annual withdrawal schedule for those interested.