Pay us from government's bailout packages - Menzgold customers

Graphic.com.gh Business News Sep - 07 - 2020 , 14:10

The Coalition of Aggrieved Customers of Menzgold Ghana (CACM) have called on the government to include them in the bailout package set up to pay locked up funds of depositors of collapsed financial companies.

In a statement signed by both the Chairman of the Coalition, Mr. Isaac Nyarko, and the Public Relations Officer (PRO), Mr. Frederick Forson, and addressed to the Director-General of the Security and Exchange Commission (SEC), Reverend Daniel Ogbarmey Tetteh, they noted that the collapse of Menzgold Ghana Limited in 2018 has brought suffering and unbearable hardship to them.

“We write on behalf of members of the Coalition of Aggrieved Customers of Menzgold to request that customers of Menzgold Company Limited be part of the beneficiaries of the bailout fund for depositors of collapsed institutions by the Security and Exchange Commission (SEC).

“The collapse of Menzgold by SEC in 2018, given the securities Industry Act 929 which mandated them to shut Menzgold, has brought unbearable hardships on Menzgold customers resulting in the deaths of over 67 people and leaving many others with various mental health issues, strokes, heart attacks, whiles many others are bedridden”, it said.

They, therefore, urged SEC to pay them from the bailout funds saying that they fall under companies SEC admits it has jurisdiction over.

Government’s bailout

SEC at the weekend announced that clients of collapsed fund management companies will start receiving their locked up funds before the end of the year.

The decision according to the industry regulator followed a relief granted the Official Liquidator, the Registrar General, to liquidate 22 fund management companies (FMCs) whose licenses the SEC revoked in November last year.

The 22 are part of the 50 FMCs whose licences were revoked “due to their inability to return clients’ funds, totaling GH¢8 billion, and significant breaches of applicable rules that created risks to financial stability”, according to the SEC.

According to SEC, the securities market regulator, said as of last Wednesday, August 26, 98,820 claims, valued at GH¢10.83 billion, had been received against 47 of the companies, with the remaining three having no claims against them.

The SEC said it had validated claims against 40 FMCs to whose records it had full access, adding that the commission only had partial access to one company and no access at all to the remaining six companies.

Read the statement below:

Coalition of Aggrieved Customers of Menzgold

2nd September 2020

The Director General

Security and Exchange Commission

Accra

Dear Sir /Madam

REQUEST FOR INCLUSION OF AFFECTED CUSTOMERS OF MENZGOLD IN BAILOUT FUND FOR DEPOSITORS

We write on behalf of members of the Coalition of Aggrieved Customers of Menzgold to request that customers of Menzgold Company Limited be made part of the beneficiaries of the bailout fund for depositors of collapsed institutions by Security and Exchange Commission (SEC).

The collapse of Menzgold by SEC in 2018 has brought unbearable hardships on Menzgold customers resulting in the deaths of over 67 people and leaving many others with various mental health issues, strokes, heart attacks, whilst many others are bed ridden.

We urge SEC to pay us from the bailout funds since we duly fall under companies SEC admits it has jurisdiction over.

We hope our request will be favourably considered.

Please kindly acknowledge receipt

Accra, Kumasi and Tarkwa

....................... .........................

Isaac Nyarko Frederick Forson

Chairman (0208338654) PRO (0502133763)

Samuel Odaetey (024 378 6322), Francis Owusu(055 936 0457),Samuel Agyarko(024 554 4161)