Today has picked up a report that Gold Coast Fund Management (GCFM) has, within the period from August 2018 to date, paid 8900 customers who invested in its Structured Finance (SF) or Guaranteed Fund product.
This is in accordance with an open commitment by the investment bank to complete total redemption of customers who have their investments and other forms of deposits with the SF portfolio within a three-year period.
The number, according to GCFM, represents the first phase of payments.
It said, the second phase is also currently in operation.
GCFM, Today’s further checks showed, has created a special office with a hotline where clients are called daily to validate their deposits where instantly those who fall within the first phase payment have their monies sent to them via mobile account number or any bank of their choice.
By this process, Today uncovered that GCFM has paid GHC2.6 million to its customers within the first phase of the exercise which are either in cash or assets swap.
According to the company, it intends to continue with the exercise as and when state agencies that owe GCFM make do with the promise to redeem their indebtedness to Gold Coast.
In the course of the phase two of the exercise, GCFM says it would be continuing with the cash payments as well as the assets swap.
The assets, the company said, include television sets, computers, air conditioners, or “even properties depending on the amount or the quantum of the customers’ deposits with the financial institution.
Gold Coast had challenges when the Securities and Exchange Commission (SEC) decided to bar all investment banks from taking deposits relating to its SF or GF product or portfolio.
Large chunk of Gold Coast’s SF product were invested in long-term projects like road construction, sea defence projects, modernised agriculture, markets and many other infrastructural projects.
GCFM said it decided to invest in such long-term developmental projects when it became apparent that most investors of the short-term SF product decided to roll over or reinvest their deposits after the expiration of the regulatory three months period.
“So although on the face value, the matured date for the SF portfolio was three months, the fact remains that most customers had overstretched the maturity period because of their decisions to roll over their investments after the three months maturity period,” the company said.
It added: “Gold Coast had no option than to invest these investments in the long-term to ensure that customers get value for their investments”.
The company claimed that, it has sponsored and completed projects that are in arrears with state agencies amount to some GHC900-1billion.
Nonetheless, the company says it has put in place contingencies to ensure that every customer gets his/her monies paid back to him/her within the three-year period it has set to redeem every deposit due every customer barring any unforeseen circumstances.
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