Pension funds for GAT took us by storm – Trustees

Bank of Ghana Governor, Ernest Addison, announced the establishment of the GAT to support some six banks

A member of the Board of Trustees for the Ghana Education Service Occupational Pension Scheme, King Ali Awudu, has revealed that the move by government to invest some pension funds in the Ghana Amalgamated Trust (GAT) came to them quicker than they had expected.

The Finance Ministry, through the Bank of Ghana (BoG) and the National Pension Regulatory Authority (NPRA), announced plans to invest pension funds in GAT to support some six banks that were not been able to meet the GH¢400 million minimum capital requirement deadline.

The move has since faced resistance from some labour unions and pension fund managers.

King Ali Awudu, who is also the President of the Coalition of Concerned Teachers-Ghanan, explained on TV3’s Saturday morning show, The Key Points, that some of the labour unions and the pension schemes resisted the move because government did not duly consult them on the matter.

“The initial stages of consultation and how the whole thing will be done was not well-fetched.

“An announcement was made by the Ministry of Finance that…that government is going to use some pension funds to support some local banks, to recapitalize, it took especially, we members of the trustees by storm because we know that at the extremely later part of 2018, we have been informed by the NPRA,” he explained.

He noted the Board of Trustees had requested from the NPRA all the necessary documents pertaining to GAT, but could not get them because the Trust at the time did not have a board.

But a board under the chairmanship of Albert Essien has been constituted.

King explained that the reason they asked for the full document on the GAT was to help them make informed decisions on how and where to invest the funds since the NPRA usually gives them guidelines.

“As the board of trustees, when the money come, you need to allow those guidelines to guide you, but we need the document so that we will know where in these categories the GAT fits and also, what are the returns of the GAT.”

He added a comprehensive document on the GAT could also inform them on liquidity decisions and how accessible pension funds will be as and when they need them.

Source: 3news.com|Ghana