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
-
Enterprise Insurance reaffirms industry leadership with 4 wins at 6th CIIG
3 minutes -
GES release national harmonised prospectus for 2026/2027 SHS admissions
4 minutes -
Presidency orders TMA, TDC to end dispute over Tema development authority
9 minutes -
Ayew brothers among Ghanaians without clubs after transfer window closes
29 minutes -
GPHA records GH¢2.82bn net profit as revenue rises to GH¢7.62bn
35 minutes -
Today’s front pages: Thursday, September 3, 2026
40 minutes -
Police arrest over 10 students over Okuapeman-Mount Sinai clashes
57 minutes -
WAFU B WCLQ: Ampem Darkoa Ladies thrash Dynamique FC to reach final
2 hours -
Chief Justice should avoid partisan political arena – Prof Kwaku Asare
2 hours -
GMTF Administrator hails Mintah Akandoh’s support as Fund marks first year
2 hours -
GPHA honours 410 staff for outstanding service
3 hours -
BoG slashes September FX support to $500m as GoldBod boosts dollar supply
3 hours -
GNFS rolls out automated fire compliance system
3 hours -
SOE profit at GH¢19.8bn: I call it a miracle, but it’s not operational efficiency – Dr Atuahene
3 hours -
SHS violence: Government must review discipline policy – IFEST
3 hours