US-Based Ghanaian Businessman Loses Investment

Mr. Andrew Akore, a Ghanaian small scale businessman who had high hopes of becoming a big time investor, had his hopes dashed when upon return from the United States Of America he could not trace the company from which he bought $4,000.00, about ?30million equivalent, investment bonds.

Explaining his misfortune to the Chronicle in an interview last week, Mr. Akore asserted that he bought some bonds on February 27, 1996 from the Prime Investment Home Credit Limited, a private company, which purported to have issued dollars index bonds or its cedis equivalent to promote investment among local investors.

According to him, his money got mature on the first of August, last year at which time he was outside the country.

Mr. Akore explained that when he came back from the States recently, he went to the offices of the company located near Kikiriki, Osu, Accra, just to be told that they had relocated.

He narrated that he then proceeded with his own investigation at the Ghana Stock Exchange (GSE) where he knew the company was also listed only to find out that it had been removed from the GSE Company Listing.

While still searching for the defunct Home Credit offices and its Chief Executive, Mr. Richard Asiamah, then a lecturer in Banking at the University of Ghana, Legon-Accra, he ran into its the company's vice president, one Mr. Akosa, at Kasoa, in the Central Region, who informed him that the company had been closed down and that Mr. Asiamah was in New York.

According to Mr. Akore, Mr. Akosa also told him that he abrogated his contract with the company a long time ago and withdrew the money he invested in it.

The official certificate of the Prime Investment Home Credit Limited, a copy of which Chronicle obtained, confirmed that he registered 9% term bond which was due August 1, 2000.

The certificate also indicates that Mr. Akore was to have to received his dividends from 1st August, 1996, semi-annually on February 1 and August 1 in each year at the rate of 9% per annum, until the principal is paid or is duly provided for.

However, as to what legal process can be taken by Mr. Akore to retrieve his money, Chronicle spoke to Mr. Mark A. Made, the Legal Officer at the Security and Exchange Commission, an organisation that oversees the activities of such companies.

Mr. Made told Chronicle that the legal process involving the Prime Investment Company and Bonds Holders is an issue which has been pending for some time now.

According to Mr. Made, the company was supposed to have raised a certain minimum amount of at least US $1million or it cedi equivalent.

He said at the end of the offer it was discovered that the company was unable to raise the minimum capital. Thus by the provision of the Company Code, states that they were supposed to refund the monies to all bond holders they were compelled, but failed to do so .

He said the matter was reported to the commission after the bond holders were unable to get their money back and certain correspondences were entered into with the company to refund the money and the Registrar General's Department also came into the matter.

He said the issue was finally handed over to the Commission in late 1998 when terms and a deadline were reached with the company to refund the money at which point the company was able to refund some of the Bond Holders' money and those who could not get theirs, especially for those who were not around, a notice was placed in one of the dailies inviting them to come with their certificates of claim, which they did.

In the case of Mr. Akore, who had then just returned from abroad, Mr. Made pointed out that he could approach the commission and then they will include his name on the list of those who have not received their money.

He said the final deadline that was given to Prime Investment to refund all the money was on the January 2, this year, but which they still failed to do.

So under the PNDC Law (333), the Commission has referred the matter to the Attorney General's Department.

He maintained that the company still exists and that it has not closed down. But all efforts by this paper to trace its offices proved futile.