Ghanaians must learn from the Menzgold – Nana Addo saga

Company News of Friday, February 22, 2019

Source: citinewsroom.com

2019-02-22

The president, Nana Akufo-Addo, explains the woes of a struggling gold distribution company; Menzgold should be an awakening for all Ghanaians.

Describing the situation as a tragic phenomenon, President Akufo-Addo urged citizens to be wary of deceptive investment projects in order to avoid similar events in the future.

"As the authorities attempt to unravel the complexities of what has happened (in the MenzGold saga), I encourage all Ghanaians to learn the lessons for the future, even as state institutions "are trying to solve the problem and have been brought to justice," Nana Addo said in her third State of the Nation address to Parliament last Thursday.

Hundreds of Ghanaians have lost millions of Ghanaian cedis because of their investments that went wrong in Menzgold.

This despite several protests from the aggrieved customers to put pressure on the government so that it speeds up the processes in order to enable them to recover their blocked money.

"The MenzGold debacle is a tragic phenomenon that seems to be happening in the eyes of all and has affected a large number of people despite warnings from official institutions. The existence of a body such as the newly inaugurated Presidential Advisory Council on Financial Stability would have prevented the appearance of the Menzgold saga and would make it difficult to set up such a system in the future. Added the President.

Menzgold Boss at bay, NAM 1

Nana Appiah Mensah (NAM1), chairman and CEO of Menzgold, is in Dubai where he faces a $ 23 million misdemeanor charge that went wrong.

He is currently in custody at the Al Barsha Police Cell.

The indictment for a crime in Dubai amounts to a second degree offense in Ghana and, if found guilty, he can spend up to two years in prison.

Returning here to Ghana, the Organization for Combating Organized and Economic Crime (EOCO) froze the properties of Menzgold and its badociated companies.

The story of Menzgold

The Securities and Exchange Commission (SEC) has asked Menzgold to suspend its gold trading operations with the public.

According to the SEC, Menzgold was involved in the purchase and deposit of gold collectibles from the public and the contracting of guaranteed returns with customers without a valid license from the Commission.

The SEC said that this contravened "Article 109 of Law No. 929 having consequences under Article 2016 (I) of the same law".

The company was, however, allowed to continue its "other badaying activities, buying gold from artisbad miners and exporting gold".

Despite initial protests, Menzgold has complied with the directive.

However, it has not fully paid its many injured customers the value of their gold deposits as well as all of their investments.