07.09.2020 Business & Finance

Add Us To The Bailout Package – Menzgold Customers To Gov't

Add Us To The Bailout Package – Menzgold Customers To Gov't
LISTEN SEP 7, 2020

The Coalition of Aggrieved Customers of Menzgold is asking for an inclusion in the disbursement of government’s bailout package for depositors of collapsed financial institutions.

The customers say it is only appropriate if they are made beneficiaries of the fund since they fall under the jurisdiction of the Security and Exchange Commission (SEC).

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

They contend the government’s failure to have the locked-up cash paid has brought unbearable hardship on them resulting in the deaths of over 67 people leaving many others with various health issues while many others remain bedridden.

Following an order from SEC to suspend aspects of its operations 2018, Menzgold has since been struggling to pay its customers their monies.

SEC later announced the revocation of licenses of 53 Fund Management Companies.

The estimated cost of the state's fiscal intervention, excluding interest payments to depositors, from 2017 to 2019 was pegged at GHS16.4 billion.

The commission recently disclosed that government is set to announce a bailout package for clients of the 53 defunct Fund Management Companies (FMCs).

However, the package will be given in phases with the first phase covering clients of the twenty-two (22) companies currently under official liquidation.

SEC has also assured no customer will be excluded in government's bailout package for persons whose funds have been locked-up in the 53 defunct fund management companies since November 2019.

There are selected branches of Consolidated Bank of Ghana Limited (CBG) to receive claims from clients who have their funds locked up at the affected companies.

The banks were tasked to accept relevant documents for validation of the investment claims.


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