Representative of Bawku Central, Mahama Ayariga, has submitted a petition urging an investigation into the government's delay in disbursing funds to clients of the defunct Gold Coast Fund Management (GCFM).

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Despite parliamentary approval, the government has not yet provided funds to 61,000 customers of Blackshield Capital Limited, a subsidiary of the defunct Gold Coast Fund Management.

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Ayariga presented the petition on behalf of Charles Nyame (convenor), Bernard Agyekum, Nathaniel Mensah, David Opoku, and Rosemond Mensah Grunitzky, who are members of a group known as Aggrieved Customers of the defunct Gold Coast Fund Management.

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He wants the House to “investigate and establish what has accounted for the Government’s failure to pay the customers of the defunct Gold Coast Fund Management” and as well compel “the Government to pay the customers of the defunct Gold Coast Fund Management their investments in the fund since Parliament approved the budget.”

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The Gold Coast Fund Management, a legally registered and accredited fund management company under the regulation of the Securities Exchange Commission of Ghana, experienced a financial sector clean-up initiated by the Government of Ghana in 2018.

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Approximately GH¢5 billion belonging to the petitioners was trapped in the defunct Gold Coast Fund Management as a result of this exercise.

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Following the financial sector clean-up, the petitioners successfully submitted and verified their claims through Price Waterhouse and Coppers (PWC).

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The regulator, Securities Exchange Commission (SEC), allocated GH¢8 billion for the overall settlement of claims for customers of all 47 defunct fund management companies.

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Parliament approved funds for the Financial Sector Clean-up Exercise, and the Minister of Finance and Economic Planning publicly confirmed the completion of the exercise, having spent Ghc25 billion. Government accounts indicated that this amount encompassed the Ghc8.6 billion intended for settling claims of investors in the 47 defunct fund management companies, including Gold Coast Fund Management.

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In his petition, Mr. Ayariga noted that individual members of the petitioners’ association whose investment exceeded GH¢50,000 have not been paid the remainder of their money “because the government paid only GH¢50,000.00 to everyone owed in 2020.

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“Many members of the petitioners’ association had gone on pension and invested all their retirement benefits in the fund and have consequently been rendered destitute and many have died not being able to afford critically needed medical care,” he asserted.

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On November 28, 2023, the disgruntled clients of Gold Coast Fund Management are scheduled to demonstrate at the Ministry of Finance regarding unpaid invoices from the now-defunct business.

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