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Business News of Thursday, 24 January 2019


Any investment scheme promising over 20% return is exhibiting fraudulent traits – SEC

Paul Ababio,Deputy Director of SEC Paul Ababio,Deputy Director of SEC

The Securities and Exchange Commission Ghana (SEC) is reiterating its caution to the general public to be guarded against investment entities which promise mouth mothering returns too good to be true.

Deputy Director of SEC, Paul Ababio noted with any investment scheme which promises twenty percent interest when the inflation rate is nine percent is unsustainable.

He stated any potential investor must check the treasury bill rate which is hovering between fourteen percent to nineteen percent so any scheme claiming to offer twenty to twenty four percent is exhibiting fraudulently traits and must be avoided.

Meanwhile laid-off workers of defunct banks; Capital and UT Bank want the Joint Receivers to give access to their providence funds.

Some agitated ex-workers say the Receivers are yet to provide concrete dates to disburse their funds to them. They maintain their provident funds have nothing to do with the collapse of their banks hence they must by right gain access to their funds.

A provident fund is a compulsory, government-managed retirement savings scheme. Workers contribute a portion of their salaries into a provident fund and employers must contribute on behalf of their employees. The money in the fund is then paid out to retirees. In some cases, it’s paid out to the disabled who cannot work.

Provident fund specifics vary widely by country, but their general purpose is to provide financial support for those who meet the plan’s defined retirement age. Governments set the age limit at which penalty-free withdrawals are allowed to begin. Some pre-retirement withdrawals may be allowed under special circumstances such as medical emergencies.