The Minister of State-designate at the Ministry of Finance, and Atiwa East MP, Abena Osei Asare has justified the Government’s decision to close down Blackshield Capital Limited and other financial institutions as part of the financial sector clean-up exercise.

The former Deputy Minister of Finance made the revelation when she appeared before the Special Committee investigating the closure of the defunct Blackshield Capital Limited and others.

She revealed that GH¢8.5 million was requested by the Securities and Exchange Commission (SEC) to pay investors of the fund management companies in the 2021 budget.

Additionally, she indicated that Parliament had approved a sum of GH¢3.1 million in the 2020 midyear budget, adding that the Government has provided an amount of GH¢3.4 billion to help pay validated claims to investors. She pointed out that, the amount was in a combination of a three-year veritable bond of GH¢2.5 billion as well as a five-year Eurobond of GH¢950 million.

The Atiwa East legislator posits that an additional amount of GH¢1.4 billion was used to provide a partial bailout of GH¢50,000 each to investors.

The Atiwa East MP stressed that the bail-out was purely carried out on humanitarian grounds to provide relief for investors who have gone a year without any payment.

She said; "The bail-out is ongoing to fully settle 80 % of claimants, including 89 % of individuals below 60 years. Even though in the 2020 budget review, SEC asked for GH¢85 million, an amount of GH¢3.1 million was paid to the sectors."

She argued that the Government's inability to pay the funds was largely due to a shortfall in revenues. Also, an amount of GH¢3.1 million was paid to fund managers while GH¢5.5 million was paid to savings and loans, Microfinance was allocated but the actual monies of GH¢1. 36 billion were paid to investors as a result of the litigation process compelling the government to halt payment.

In his remarks, the Chairman of the Committee Joe Ghartey MP Esikado Ketan has assured customers of Blackshield Capital Limited that the committee is working assiduously to investigate the issues and present a report to Parliament.

The Bawku Central lawmaker Mahama Ayariga disclosed that the SEC, the official Liquidator claimed they are in court so the Committee directed that they provide the necessary documents to back their claims.