Disgruntled Gold Coast Fund customers picket at Finance Ministry

A significant number of disgruntled customers who had investments with the now-defunct Gold Coast Fund Management are urging the government, specifically through the Ministry of Finance, to release their funds that have become inaccessible or "locked up."

These concerned customers initiated their call to action on Monday by commencing a 48-hour picketing of the Ministry of Finance.

On November 8, 2019, the Securities and Exchange Commission (SEC) took action in accordance with Section 122 (2) (b) of the Securities Industry Act 2016 (Act 929) by announcing the revocation of licenses for 53 fund management companies, which included Gold Coast Fund Management.

This decision marked a significant regulatory move by the SEC in response to issues in the fund management industry.

The Securities and Exchange Commission (SEC) cited significant breaches of applicable rules that posed risks to financial stability as the reason for the revocation of licenses for these 53 fund management companies.

Additionally, these companies were unable to return their clients' funds, amounting to a total of GHC 8 billion.

In 2021, Parliament approved the disbursement of GHS 5.5 billion to all investors who were affected by the revocation of licenses for the 47 companies.

As of March 2023, the Securities and Exchange Commission (SEC) issued a statement indicating that the government had not released the entire GH¢5.5 billion to the implementing agencies responsible for the bailout.

These agencies include the Amalgamated Fund and GCB Capital Limited, which were tasked with managing and disbursing the funds to investors affected by the regulatory actions against the 47 companies.   

Speaking in an interview, Mr. Charles Nyame, the Convener of the Aggrieved Customers of Gold Coast Fund Management, expressed concern over the government's claim that it had paid GH¢26 billion as part of a financial sector cleanup.

He pointed out that, despite the government's assertion, they, as aggrieved customers, had not yet received their funds.

“When you try to digest the component of this GH¢26 billion that the government claimed it has spent, our approved 8.6 billion that is supposed to be paid to fund management has been calculated as part of the GH¢26 billion that has been spent and these monies have not reached us,” he said.

Mr. Enoch Naah Newman, a pensioner and former employee of Total Ghana Limited, shared that his difficulties began during the financial sector cleanup and called upon the government to focus on economic recovery and to ensure that those impacted by the cleanup in the financial sector receive their due payments.

“Previously, we were informed during the 2020 election that every pensioner will be paid. So, we proceeded with that to go for validation process to ensure that everyone is paid. After the process, we received GH¢50,000 and that was all we received. Even till now, some people haven’t received any money yet because they were still going through the validation process and the government stopped it. Now the government is claiming everyone has been paid,” he said.

Madam Cecilia Ansah, an investor who has been adversely affected by the financial sector cleanup, disclosed that the current economic challenges have compelled her to withdraw all her children from private schools.

“My coming here is because of own money. Ken Ofori-Atta said the monies have been paid, but I have not seen any money. These are my receipts, if he pays me, I will go home and take care of my children,” she added.