Why Is Databank Still Operating? . . . Shut It Down! - PPP Chairman Goes Wild On Securities Exchange Commission | Business News

The statement also indicated that "as part of these discussions, the SEC issued a notice to Market Operators (SEC/CIR/005/12/22) on December 9, 2022, indicating its intent to support the market with much-needed liquidity relief, including access to the Financial Stability Fund as a last resort".

"Therefore, we are hopeful that once the Debt Exchange Program has been concluded (expected settlement date: January 5, 2023), we will be able to access the necessary funds to once again pay withdrawal requests. We are totally reliant on the Government of Ghana to pay us, so we can in turn pay customers", it added.

Collapse Data Bank

But Nana Ofori Owusu has dissented to the SEC action to support Databank with the Stability Fund, questioning why they didn't create the same fund to cushion Gold Coast Securities, another fund management company, in 2019 before opting to shut it down when it was saddled with difficulties in resolving the plight of investors who placed funds with the company.

SEC halting the operations of BlackShield Capital Management (formerly Gold Coast Securities) triggered angry reactions from the public but SEC Boss, Rev Daniel Ogbarmey Tetteh turned deaf ear to the management, customers and the public.

Nana Ofori Owusu argued that at the time Gold Coast Securities' license was revoked, it had invested 67 percent in government bonds and businesses but SEC went ahead to end their operations despite their pleas for time to address the problem of their investors.

"Today, we are learning that the Finance Minister's company, Databank, has invested 90 percent of their money with government bonds and government securities . . . So, you collapse one company for supporting government business, bonds and securities; contractors, local Ghanaian contractors , were given money and they completed the project. [some of them] about 8 of them, theirs were 30 million, some 50 million and others 5 million but [a company] one company has invested about GHC 4 billion in government securities and you're saying you won't pay the money and in not paying their money, you took away their licence.

"Now, Databank has come out to say they too are unable to pay investors their liquidity challenge but with them, it was 67 percent that they give into government bonds and securities. They say it is 90 something plus percent of their portfolio was used to do this thing but with them, you have created a stability fund to bail out your companies; about 15 billion we are being told, to bail out your companies . . . So, how come that we live in a country where, on one hand , when you do something and I don't like you or I think you are not beautiful to me, then I will destroy your company?", he contended.

He couldn't fathom why Databank will be supported with a fund to revamp their operations when Gold Coast Securities didn't get equal privileges.

"The conditions that were there for Gold Coast Securities is the same conditions prevailing for Databank. Databank has done worse than what Gold Coast was going in at the time. They have used 90% of their portfolio to do government securities. Now, the safest investment you can do in the whole world is buying government bond; it used to be. The safest investment is buying government bonds, investing in government business and if someone has invested 67% in government business, you question why he has invested so much of his portfolio in government business.

"Now, some other person is telling you he has invested 90% in government bonds, you won't tell him it is too much...They should collapse Databank. They should take their licence. They should do the same thing they did to other security companies," he said while discussing the financial sector challenges during Peace FM's morning show"Kokrokoo".