Fears among aggrieved customers of defunct Gold Coast Fund Management have heightened over the feasibility of government’s approach in dealing with affected clients of the company through a liquidation process.
The customers are seeking an assurance from government, guaranteeing that the liquidation exercise would lead to the retrieval of all investment within the next few months, as they do not want the Dr Papa Kwesi Nduom owned company to write off its indebtedness to them as bad debt.
The Securities and Exchange Commission (SEC) earlier this month revoked the license of 53 fund management companies among which was the Gold Coast Fund Management company which recently rebranded itself as Black Shield Capital Management.
Following the revocation, liquidation is due to take place in order to offset debt and other financial obligations of the affected companies.
Speaking at the media briefing in Accra on Tuesday, the Public Relations officer of the group, Charles Nyame, who said the decision to liquidate was taken on the blind side of customers, has cautioned against any attempt by government and SEC to shield Dr. Nduom in concealing their funds.
“We are aware how Dr. Nduom has used our funds to finance Government of Ghana projects and to also finance his related businesses under the Group Nduom Companies. We want to know if this new decision by the government is therefore a subtle ploy to avoid paying their indebtedness to GCFM” he said.
The group is also calling for the interdiction of Dr Nduom who according to it has been cited for financial irregularities by regulatory bodies such as SEC and the BoG, while calling on government to disclose due contracts’ amount financed by the fund management company.
Mr. Nyame has among other things recommended the sack of the SEC boss, Dr Daniel Ogbarmey-Tetteh for his incompetence in supervision, a meeting between government and aggrieved customers, an increase of the highest capped amount of GH¢20,000 as proposed by the finance minister and provision of receipts to serve as evidence for customers who took part in the validation process.
“Instead of liquidation that would worsen the already deplorable situation of customers, government should rather guarantee against the assets of GCFM and Group Nduom Companies and credit the respective bank accounts of customers with payment timelines by December 2019, otherwise we will resort to series of demonstrations nationwide” he said.