GH¢4.1 Billion Allocated for Customers of Gold Coast Fund Management in Banking Sector Clean-up

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Government Commits GH¢4.1 billion to Clear Remaining Gold Coast Fund Management Company Debts

Our insiders within the Ghanaian government have reported a significant allocation of GH¢4.1 billion towards the resolution of the remaining unsettled funds of customers of the Gold Coast Fund Management Company Limited. This move serves as a direct response to the larger nationwide financial sector cleanup initiative, addressing the colossal sum of GH¢8.9 billion locked up in Asset Management Companies (AMCs). This report comes straight from our reliable sources in government.

The Finance Ministry’s Approach to Address the Lockup Funds Situation

Our sources confirm that Abena Osei-Asare, the currently set Minister of State at the Ministry of Finance, has released this critical financial information. This communication is particularly relevant to the specially appointed committee tasked with investigating the causes of delay in the promised payments. However, the committee has been briefed that the delivery of the GH¢4.1 billion is contingent on the reliable availability of government revenue.

Historically, the payments have followed an uncertain pattern, as demonstrated by the allocation of GH¢3.4 billion in 2020 even when the budget was just GH¢3.1 billion. In 2021, despite a budget of GH¢5.5 billion, only GH¢1.36 billion was allocated. This scenario provides insight into the highly unpredictable nature of these financial settlements.

Observed Discrepancies in the Settlements Process and Future Plans

Our sources indicate a noticeable divide between the clients who have received their funds and those who haven’t, based on the size of their investments. Reportedly, clients who invested funds exceeding GH¢50,000 still have pending settlements. In contrast, the government primarily settled clients who invested smaller amounts, largely on humanitarian grounds.

However, our investigation reveals another significant hurdle affecting the process: ongoing litigation against the government for the revocation of licenses of AMCs, which has contributed to delays in fund releases. As a result of these pending legal issues, no financial allocations have been made for the 2022 and 2023 fiscal years. Our insiders assure us that the government remains dedicated to resolving these issues and confirmed that approximately 28,000 customers remain unsettled.

The Role of the Investigating Committee

Based on information obtained from reliable government sources, the formation of the special investigating committee, led by Joe Ghartey, was triggered by a compelling petition submitted by MP Mahama Ayariga. This petition, written on behalf of the affected customers, plays an essential role in initiating action towards addressing this crisis.