Home Business All Depositors to be paid amid bank cleanup exercise, Says SEC Boss Daniel Ogbarmey Tetteh

All Depositors to be paid amid bank cleanup exercise, Says SEC Boss Daniel Ogbarmey Tetteh

by The Ghana HIT

Speaking during an interview, Reverend Daniel Ogbarmey Tetteh, The Director-General of the Security and Exchange Commission (SEC), has confirmed that the recent cleanup exercise in the financial investment sector will see all claimant depositors being sorted out by the government.

According to Tetteh, 40 out of the 53 affected firms have had their records fully looked into by his outfit. The SEC boss further stated that 7 more firms were in the process of having their records accessed in a bid to carry out the liquidation process for them. Reverend Tetteh went on the extra mile and confirmed that 22 fund managers have been granted liquidation orders and hence the process to pay the depositors’ investments has already been laid down.

“As at the end of July when the legal vacation kicked in, the court had granted the official liquidator 22 liquidation orders and we also had full access to the records of 40 out of 47 of the firms because three did not have any claims filed and we did say that there is a government bailout and it will be rolled out in phases. So phase one will be the firms that the court had granted the liquidation order. A government bailout is for all affected investors and not for only those that liquidation orders have been granted at the time. So that clarity has to be there and it is just a question of time,” said Reverend Tetteh.

This year’s cleanup exercise comes as a result of a lengthy discussion with the government which led to the appointment of Registrar General who is the official liquidator charged with ensuring that every depositor whose funds were locked up during the previous cleanup operation is paid his/her dues as invested with the fund managers. This is in contrast with what happened in November last year where 53 fund managers’ licenses were revoked due to liquidity challenges that led to the investors’ claims ending up unsettled.

During the interview, Daniel Ogbarmey Tetteh marveled at the smooth flow of the liquidation process with the only drawback being the legal vacation which has slowed down the process. However, Tetteh assured the investors of granting more liquidation orders as soon as the court resume.

“We have explained that the bailout is rolled out after two conditions are fulfilled. When your claims are validated and when the liquidation order has been granted. The legal vacation has been on and ended in October this week that is essential when the court resumes. So we are expecting that we will be getting some more of the liquidation orders granted because they were at various stages before the legal vacation hit. So in terms of liquidation orders, there is nothing new that we can report as I speak,” added Tetteh.

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