Parliament has endorsed recommendations from the Joe Ghartey-led Committee urging the implementation of insurance schemes to safeguard investors amidst financial uncertainties.

The committee’s report, prompted by the Blackshield Capital Limited’s case in which numerous customers faced locked funds, stresses the need for a shift from government-backed guarantees to sustainable insurance solutions.

Highlighting the unsustainable burden on taxpayers, the committee emphasised that relying solely on the government as a guarantor for all financial transactions was no longer feasible.

“The dependence on Government cannot continue indefinitely,” noted the committee, advocating insurance as a pivotal tool in mitigating financial risks and protecting investors’ interests.

The report specifically addresses the fallout from Blackshield Capital Limited, revealing staggering figures: as of January 4th, 2024, a total of 89,632 claims had been filed, amounting to approximately GHC5.14 billion. Despite partial bailouts in the past, many investors remain unsettled, prompting calls for alternative protective measures.

“While Parliament acknowledges the necessity to support affected investors, it recognizes its limitations in compelling direct disbursements from the Budget,” the report clarified. Instead, the committee emphasized the adoption of insurance mechanisms to offer a safety net against future financial crises, thereby alleviating pressure on government finances.

The adoption of the committee’s recommendations marked a pivotal step towards enhancing financial stability and investor protection in Ghana.

The Speaker of Parliament, Alban Bagbin, expressed satisfaction with the thoroughness of the committee’s work and the proactive measures proposed. “The report highlights the importance of insurance in protecting investors, reducing risk, and promoting financial stability,” he Speaker affirmed.