A private legal practitioner, Amanda Clinton, who is serving as Counsel for several aggrieved investors of troubled gold-trading firm Menzgold Ghana Limited, has revealed that as many as 1.8 million Ghanaians invested in the firm during its five-year operations.
And within that period, at least $200 million dollars were invested – the highest single investment being $6 million.
Since August 2018, the company, owned by 32-year-old Nana Appiah Mensah, has not been able to pay extra values earned on investments to its clients nor their principal capital, after the Securities and Exchange Commission (SEC) asked Menzgold to stop its gold vault market operations over regulatory infractions.
In Ms Clinton’s view, the government of Ghana must, in a way, intervene in the debacle by giving Ghanaians a full report about how a company that was given several warnings by the regulators to stop operations over the five years, still managed to attract so many customers and have so much money pass through its vaults as an “unregulated” business.
She told Samson Lardi Anyenini on Multi TV Saturday, 29 December 2018 that the SEC should have stopped Menzgold from operating “within the first week”, since, according to her, there were too many red flags to ignore.
“Before $200 million was pumped into an unregulated company, the first week, Menzgold should have been shut down for three reasons. The first reason is they’ve opened as a bank twice; the same people opened as a bank twice and then they come to you with a different name and then you try to look into them, that’s a red flag because you are the same people and you’re trying to take deposits. The second issue, February of 2017, the Chairman of the finance committee of parliament comes out and says: ‘Look, as of February 2017, we had a meeting with Menzgold and we told them they are an illegal outfit. And, so, an illegal outfit as of February 2017 categorically isn’t shut down immediately?” Ms Clinton wondered.
Finance Minister Ken Ofori-Atta, who referred to the Menzgold clients as “greedy” people on, at least, two different occasions, has already said the government will not spend a pesewa of state funds in paying the locked-up funds.
Menzgold petitioned parliament’s select committee on finance to mediate an amicable resolution of its differences with the regulators, but the lawmakers said there was nothing they could do to help the situation.
The ranking member of the committee, Cassiel Ato Forson, urged the state to confiscate all assets of the company and its CEO Nana Appiah Mensah, sell them off and use the proceeds to pay off the clients.
Nana Appiah Mensah is currently out of the country – his whereabouts unknown.
Source: Class News
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We are here Menzgold sponsored premier league with heavy sum of money to Ghana sports knowing very well Menzgold was operating with fake documents -Linscence and the Government of Ghana accepted her offer and this put trust into many Ghanaians to invest with the company. Who is telling the truth: Menzgold, SEC BOG and the Government of Ghana. Tell us the truth.
Hi Amanda, we are with you. Aggrieved customers of MenzGold are not asking government to use taxpayers money to pay for the locked up investments of MenzGold customers. The crux of the matter is that the NPP government, BoG and SEC are shielding a criminal who has run away with customers investments and it ihas bone absolutely clear that laws do not work in Ghana.
OOOOHHH! NOW I CAN SEE, SO SAYS THE BLI*ND MAN. THE GHANA LEGAL SYSTEM AND THE CRIMINAL CODE DO NOT RECOGNISE BIG TIME STEA*LING ANY MORE AS A CRIME. ONLY SMALL THI*EVES SUFFER BIG PUNISHMENTS FOR THEIR CRIMES. IF I MAY ASK, IS IT BECAUSE THOSE IN AUTHORITY TO ENFORCE THE LAW ARE STEA*LING BIG TIME THEMSELVES AND SO BIG STEA*LING IS NO LONGER A CRIME BUT RATHER A REWARD FOR BEING TOO BOLD? SOMEBODY, ANSWER ME SO THAT I CAN GO TO SLEEP AND SLEEP SOUNDLY, BECAUSE I DON'T HAVE ANYTHING BIG THAT THE AUTHORITIES CN STEA*L EXCEPT MY WIFE AND MY CHILDREN. BUT THOSE ONES THE LAW WILL ACT SWIFTLY.
@ KB so for the sake of providing jobs, an illegality should be supported? Armed Robbery provides jobs so they also be supported? Illegality is any form should NEVER EVER BE ENCOURAGED.
I thought Menzgold also employed Ghanaians? why are we not crying about job losses due the shutdown of this company if we say all job is job. You see how we can be hypocrites? Too many people parading themselves as BIG MEN but very fake BIG MEN.
if this man is not arrested and prosecuted for his offences, forced to pay customers monies back to them, don't worry at all, We will also do some in the near future. We Register a company. Go beyond our licence. Make it look attractive. When more money come in then we start licence argument with the regulator then off we go with people's monies. Since this thing has been happening so many times in this non serious country. After all, we have seen laws don't work in Ghana. We all dey here and watching.
Gold Coast fund management customers too will seek your services soon.