The Security and Exchange Commission has organized a day stakeholder engagement to educate people of the Western Region on credible investment and Ponzi schemes to prevent people from falling victims in the Capital market.
The event took place at Best Western Pluz Hotel, Takoradi on Wednesday, 29th September 2021 under theme “Understanding the Role of SEC in the Capital Market.”
The move has become necessary due to efforts to clarify how the Capital Market works by deepening public understanding to enable citizens to position themselves to take advantage of the market.
The Forum was also expected to improve the relationship between the Security and Exchange Commission and the General Public.
Francis Boadu, Head of Department Brooker – Dealers and Advisors, Security and Exchange Commission, used the occasion to advised the general public on different types of Ponzi Schemes and how citizens can easily detect them.
According to him, there are two forms of Ponzi Schemes, the Ponzi that emanated from Charles Ponzi who migrated from Italy to America in the 1929s; he was the first to have engaged in the Ponzi Scheme.
Charles Ponzi Scheme, takes people’s investments and promise a particular interest rate. The first investor gains from the 2nd investor’s investment , the 2nd investor is also expected to be paid through the 3rd investor’s investment. It continues in that pattern. The business comes to a standstill when new investors do not come on board and that is exactly what happened to Menz Gold when SEC advised them to hold on with the deposits, Francis Boadu explained.
On the other hand , the Pyramid Ponzi encourages customers to recruits, other investors, to get paid. New Investors are also expected to recruit other people to get paid through the building of an investment tree with legs.
He added with a Ponzi scheme, there is no Economic Model that defines its long-term sustainability.
Security and Exchange Commission is currently waiting for the court to rule on liquidation cases for fund managers to be able to make payments to customers.
Customers of defunct fund management were also assured by SEC’S Deputy Director-General, Legal, Muwuse Agyemfra of their locked-up funds when the court gives order.
“Initially it was only companies whose licenses were revoked by SEC who were been considered to be paid but those who were not under SEC but their licenses were equally revoked were excluded under the bailout package plan, the government was of the view that companies without a court order will not be paid but recently president has assured companies without the court order to get at least GH 50,000. So far 64000 customers have benefited from the GH 50,000 with only 11000 customers standing by for the court order to get paid.
According her, Until Gold Coast proves that they can pay the money own to client, as it stands, Attorney General has a case.
“The reason why auditor general is going to court is that Aattorney General believes Gold Coast cannot pay the outstanding debt, till Goast Coast can prove that they can pay the money, we are of the firm belief that the court will rule in favor of the attorney General”
Deborah Muwuse Agyemfra went ahead to direct customers who are yet to be paid on how they could access funds.
“A Court order has been given to 43 companies, in case you are a customer of any of the companies, in case you filled the form after the licenses of the companies were revoked, first of all, you will get a text message in a form of a claim I.D.The message will direct you to where you can go and check on the agreement for the partial bailout. This is not by force but in case you don’t like the agreement, you can forgo it.
There are people who have signed the agreement but have not received any money, they can go to gh [email protected] to send an email that they have not gotten their money”.
The Western Regional Minister, Kobby Okyere Darko Mensah called on SEC to establish a branch in the Western Region to enable the region to make its independent decision to gain more insight into what could be done to ensure financial security.
He advised the youth to change their minds about the economy if they want to prosper.
Nana Kobina Nketsia V, Omanhene of Osikado Traditional Area, who was the Chairman of the event, said that Dr. Kwame Nkrumah Trumpeted economic independence after Ghana gained its independence. This makes it important that any agenda directed towards economic independence to be key in the life of every Ghanaian.
Story: Kwame Offei
