Audio By Carbonatix
Securities and Exchange Commission (SEC) is investigating money managers for locking up as much as ¢5 billion in risky investments they’re struggling to retrieve for clients.
The funds are stuck in short-term unlisted bonds, direct private-equity stakes and related-party deals for small- and medium-sized businesses, said Paul Ababio, deputy director-general at the Securities and Exchange Commission.
With efforts to retrieve the money proving futile, the SEC is starting forensic audits to determine how to retrieve money for investors, which may include selling off the fund managers’ assets, he said.
“If part of their portfolio is distressed, we have to understand it to know what solution to deploy,” Ababio said in an interview in Accra. “We’ll look at what can be done for investors -- we’ll look at liquidation.”
Cleaning up the nation’s ¢25 billion fund management industry became necessary after a recapitalization exercise by the central bank exposed weaknesses in the system.
While the drive strengthened the banking industry and reduced the number of lenders by almost a third, the early stages of the program spurred panicked withdrawals from depositors trying to access their savings, drying up liquidity among fund managers.
Twenty one firms are being audited, which will be completed by the end of the year, Ababio said.
In all, ¢9 billion was reported by fund managers as being tied up, of which ¢4 billion was held in Treasury bill-linked instruments with banks, savings and loans companies or microlenders, he said.
After setting aside ¢11.2 billion to bailout the banking industry and ¢925 million to rescue microlenders, the government plans to invest at least ¢3 billion to help savings and loans companies, the finance ministry said in April. The funds will be used mainly to ease pressures from investments linked to T-bills, Ababio said.
SEC rules forbid fund managers from directly underwriting corporate debt or taking straight private-equity positions, even though they can lend to businesses through reputable financial institutions and invest in a private-equity firm, which then acquires stakes in companies, Ababio said.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Amin Adam calls for IMF action on BoG recapitalisation, gold sales and monetary risks
6 minutes -
Amin Adam petitions IMF over BoG’s 2025 accounts, flags fiscal risks
10 minutes -
On the Frontlines of Russia-Ukraine War: The harrowing experience of a Ghanaian recruit
10 minutes -
Ato Forson leads Bawumia by 18 points in 2028 poll; Asiedu Nketia ahead by 12
11 minutes -
Roads Minister threatens termination of Sawla–Wa highway contract over delays
28 minutes -
UGCFL Season 2: Group A match week 10 preview
40 minutes -
Greater Accra Peace Council urges residents to observe ban on noise making
40 minutes -
10 arrested over illegal arms possession linked to Adambrobe chieftaincy dispute
48 minutes -
Today’s Front pages: Tuesday, May 5, 2026
54 minutes -
World Bank projects sharp rise in global fertiliser prices in 2026, warns of food inflation risks
1 hour -
REGSEC, Tema West Assembly begin 3-day demolition of illegal structures at Sakumo Ramsar site today
1 hour -
Roads Minister confronts contractor over ‘unacceptable’ delays on Techiman–Wenchi road
1 hour -
Cyclist awarded motorbike by Anwelle Foundation for 525km ride to promote Bong-ngo festival
2 hours -
The Pastor and the Tithe, the Politician and the Tax
2 hours -
Visibility is the new currency; be seen or go broke
2 hours