The Economic and Organised Crime Office (EOCO) has invited the CEO of Menzgold Nana Appiah Mensah over the operations of the gold investment company.
The Bank of Ghana (BoG) on Tuesday, August 7, 2018 issued a public notice that it is in discussions with relevant regulatory authorities to sanction Menzgold Company Limited for engaging in “solicitation, receipt of money or investment and the payment of dividends or returns to its clients” without a licence to do so.
EOCO has taken the issue up to investigate the dealings of the “Gold hub”.
Sources close to the Executive Secretary of the anti-graft institution Mr. K.K. Amoah have told Starrfmonline.com the Menzgold CEO has been invited on several occasions to the Old Parliament House “but has failed to honour the invitations.”
“We’re looking for him. We’re not getting him on phone, but we’ll pursue it,” the reliable source noted.
Following the BoG’s public announcement, Starrfmonline.com understands EOCO has intensified its efforts to track down the philanthropist to “hold discussions about his business dealings.”
Central Bank’s claims
According to the Central Bank, Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits.
Menzgold is currently operating with a license granted it by the Minerals Commission and the Ministry of Lands and Natural Resources.
In a public notice issued by the BoG, it said the company has no authority to engage in what it says are the “solicitation, receipt of money or investment and the payment of dividends or returns to its clients.”
The central bank maintained that Menzgold is in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
BoG further said in spite of several warnings to the company, Menzgold continues to engage in the illegality; hinting that discussions were already underway with regulatory authorities to enforce the appropriate action on the company.
“Accordingly, anyone who transacts any of the above-mentioned businesses with Menzgold Ghana Company Limited does so at his or her own risk and the Bank of Ghana will not be liable in the event of loss of investments or deposits.”
Menzgold’s response
But Menzgold in a statement on Tuesday said “we hereby state emphatically that we DO NOT accept deposits from customers or carry on a deposit taking business in Ghana. Our activities are not within the scope of the Banks and Specialized Deposit-Taking Institutions, Act, 2016, Act 930. It therefore CANNOT be said that we are in breach of the Act.
“The activities of Menzgold Ghana Limited is restricted to allowing customers to purchase gold or deal in gold as an alternative investment. The Bank of Ghana is clearly aware that these activities are outside the scope of The Banks and Specialized Deposit-Taking Institutions, Act, 2016, Act 930.
“Menzgold Ghana finds it unfortunate and disparaging that the Bank of Ghana, with whom we have had a number of engagements over the years and taken them through our business procedures would still issue such a statement. Unfortunate and insensitive as the statement may be, we are resolved and even keener to continue to deliver the best of service to our customers in Ghana and beyond.
“Management assures the general public that doing business with Menzgold is safe. The Company is growing in strength and expanding with offices recently opened in United Kingdom, Spain and soon in Nigeria. Our doors as always are open to the Bank of Ghana and any other organization that would want to seek clarity on our business.
“That said, it is imperative that Government and other State Intuitions support indigenous business initiatives to thrive in this economy while putting in the correct supervisory mechanisms to ensure that they operate within the remits of the law. We pray that authorities will show more interest in building, nurturing and supporting business growth in an enabling atmosphere as anything to the contrary could be detrimental to the economy of the Nation.”
Source: Starrfmonline.com
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IN FACT, ERNEST ADDISION SHOULD BE VERY CAREFUL AND REMEMBER THAT THERE WERE PAST GOVERNORS BEFORE HIM AND HE SHOULD LEARN FROM THEM THAN TELLING AKUFO ADO THAT HE IS WORKING. AM ONE OF COSTUMERS FROM MEZGOLD I BOUGHT A GOLD SENT IT THERE PAID COMMISSION TO THEM AND RECEIVED MY DIVIDEND MONTHLY THERE IS NOTHING OVER THERE LIKE DEPOSIT AT ALL.WHAT ADDISION IS DOING WILL RATHER PUT HIM ON DEATH TRAP BY MOST GHANAIAN DOING BUSINESSES WITH MENZGOLD I WISH HE SHOULD LIMIT HIMSELF TO MOST THINGS THAT WILL JEOPARDIZE GHANAIAN PEOPLE INVESTMENT. I WILL NOT BE SURPRISE IF PEOPLE WILL NOT START TREATING HIM AM SURE IT WILL HAPPEN AS HE ALREADY COLLAPSE 5 BANKS WITHIN 18 MONTH.
The EOCO should be fair to all Ghanaian in approaching such matter. This company has been in existence since 2015 and you could not invite them till Bank of Ghana alleged illegality? Very interesting!!!!!!!! The very financial institutions Bank of Ghana expects Ghanaian deposits their monies are collapsing due to Bad corporate governance, comprise by the regulator and external auditors. Some Telcos are using the mobile money platform to grant loans. Do such telcos have banking license to carry same? If Bank of Ghana believes that operations of Menzegold provide better alternative source of investment to Ghanaians as it been alleged as derivative trading, then they should come out with laws to regulate such market and promote such markets. Lets all promote Ghanaian companies. we pray that EOCO will be fair, honest and apply the law without fear or favour devoid of political influence Why is the branches in Spain, United Kingdom were laws actually work have not taken any steps to sanction this company if there is any sought of illegality? they know that such business will promote their economy. God bless our Homeland Ghana and make our nations great and strong
This is what Ghanaian leaders want. They don't want progress in the life of any individual who tries to make the life of people better. Please, we are tired of bank of Ghana and their problems. They should allow indigenous companies to grow and stop collapsing them. What kind of government is this? They keep on collapsing local business. They should leave Menz Gold alone for it to work in peace
This is becoming too much. why is BOG not going after investment companies such as Data Bank? on what bases is the guy being investigated? He deals in gold not taking deposit. BOG have gradually managed to bring down Ghanaian Banks even before the deadline for the 400 million. This whole scheme is targeted at Ghanaian banks and they are now collapsing.