The Management of defunct Blackshield Capital Management Limited formerly Gold Coast Fund Management has urged the designated authority to pay back investments due their customers.
This comes after the Securities and Exchange Commission (SEC) absolved the Finance Minister of the blame for the delay in reimbursing investments of customers of the financial institution.
The statement by SEC further blamed the legal action started by BlackShield for the delay.
“We wish to state that the delay in payment of bailout funds to affected customers is not due to the refusal of the Ministry of Finance to provide funds. The delay is principally due to the legal action by Blackshield/Gold Coast contesting the liquidation petition brought by the Official Liquidator (Office of the Registrar of Companies) at the request of SEC following the revocation of licenses. The SEC will continue to support the Official Liquidator in pursuing the liquidation petition in court.”
In response, BlackShield, “We urge those responsible to pay what is due to BlackShield Capital Management Limited and related companies so that what is due to our customers per our records can be paid to them.”
The Company explained that “SEC did not allow due process to play out per their regulations before deciding to withdraw the BlackShield Capital Management Limited’s (BlackShield) license. SEC refused to assist BlackShield in collecting what is now over GHS5 billion in principal and interest owed to the company and its related companies by government institutions, saying that “…it is not a debt collector”. SEC knows that Parliament did not impose any conditions for the payment of validated funds due to customers of fund management companies including BlackShield. We ask, why is the SEC using “liquidation” as a condition for payment?”
It is hoping that the court will rule in its favour with the licence subsequently being restored.
In 2019, the SEC revoked the licences of 53 fund management companies including BlackShield due to their “inability to return clients’ funds totaling GHC 8 billion, and significant breaches of applicable rules that created risks to financial stability.”
After GHS 5.5 billion was approved by Parliament for the bailout, SEC released a statement in March saying the total amount designated for Blackshield clients in the partial bailout was GHS 1.34 billion covering a total of 73,541 claims. It said out of this amount, a total amount of GHS 757,539,141 had been used to fully settle 61,734 of the claims.
On October 10, 2023, aggrieved customers of Blackshield began a 48-hour picketing at the Ministry of Finance (MoF) to demand their funds.