The National Association of Graduate Teachers, NAGRAT is worried about a decision by the government to permit the use of private pension funds into funding some of the country’s struggling local banks through a specially created entity called the Ghana Amalgamated Trust (GAT).
The Association is suspicious of government’s intentions on the deal. The National President of NAGRAT, Angel Carbonu in a Citi News interview expressed regret that there has not been any official communication from the government to workers who own the fund.
He said the decision by the government is against the will of workers.
“We are very apprehensive about this new scheme that government wants to introduce. We see the Ghana Amalgamated Trust as just a conduit institution being established by government to channel workers’ pension funds to financial institutions against the will of workers. As we speak, there is no single document that has been placed before the owners of the fund. The money does not belong to government,” he said.
The Bank of Ghana at a press conference last week to present updates of its reform within the banking sector revealed that a special purpose vehicle, the Ghana Amalgamated Trust has been created to support some struggling banks.
It said GAT is an arrangement of private pension funds to inject GH¢2 billion into supporting solvent and well-run indigenous banks, which were otherwise having difficulties meeting the new minimum capital requirement of GH¢400 million.
The banks selected to benefit from the package are the merged Omni/Sahel Sahara Bank, Universal Merchant Bank, Prudential Bank, ADB and NIB.
But some pension contributors are apprehensive over the move as they are uncertain about how it is going to succeed.
Meanwhile, the Chief Operating Officer of Dalex Finance, Joe Jackson is casting doubts over the ability of Ghana Amalgamated Trust Limited to generate enough funds to revive some struggling local banks.
He expressed worry that the political nature of the entire arrangement will make it unattractive for potential investors.
Source: Graphic.com
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I do not blame you if your friend is Franklin Cudjoe who knows everything under the sun.
Some of these weasels find their voices only when the NDC is in opposition. Check but for Pension fund from SSNIT, HFC Bank would not have existed so as current SG Bank as well as most companies listed at the GSE. Get educated and stop this populism.
Indeed, we cannot live in a country where everyone is a 'president' and so all decisions must be chanelled through them. Pension Funds do not grow by being kept in a safe. They're invested so they make returns. Once you deposit your money with a Fund Manager, you demonstate your 'trust' in their judgement to make the right inveestment decisions. If you don't like their investment decisions, you change Fund Managers. But you're not allowed to tell them how and where they invest. No one has this type of absolute power, not even the President of Ghana!
Being the President of NAGRAT does not make you a manager of Pension Funds. Has SSNIT ever consulted you on how funds are invested? You have made your current position as a 'trouble shooter'. Tell me of any Fund Manager who goes to consult clients before investing. Please keep to your profession as a teacher and let others do their work. Do you know that some of the Pension Funds have been idle due to lack of proper investment avenues? Please rather advise you members to rather stop investing in Ponzi Schemes. This is what I am expecting you to engage experts to advise your members about good investment for them not to fall pray in dubious investment schemes..IF YOU FEEL DISSATISFIED PLEASE GO TO COURT.