Business News Tue, 7 Aug 2018

Bank of Ghana is a ‘joke’ – Menzgold boss

Chief Executive Officer Menzgold Ghana Company Limited, Nana Appiah Mensah has described the Bank of Ghana (BoG) as a ‘joke.’

His remark followed a public notice by the central bank indicating that it was moving against Menzgold.

According to the regulator, Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits.

But in a post on social media, Nana Appiah called the bluff of the central bank.

“TODAY’S JOKE: Bank of Ghana, so now you dey do propaganda? I beg paa “Tell Ghanaians exactly what happened with the 5 or so collapsed banks you duly LICENSED & SUPERVISED for years. Please don’t attempt to use our dear Menzgold to cover up. I beg make we think!”, he tweeted.

In reply to a follower who asked him to respect the regulator, Nana Appiah said he does not recognize the BoG as his supervisor.

“BoG is not my regulator. Get your facts right. I do not operate under Act 930. Therefore BoG does not have jurisdiction over my business plus the baseless allegations. We had a year-long meeting with the central bank and resolved, that should have been the end of the matter”.

BoG’s warning

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.”

What the Deposit-Taking Institutions Act, 2016 (Act 930) says

Deposit-taking business

(1) Subject to this Act, a person shall not carry on a deposit-taking business in or from within the country unless that person is a body corporate formed under the laws of this country.

(2) A person that is not a body corporate formed under the laws of the country may, with the prior written approval of the Bank of Ghana, carry out a deposit-taking business in or from within the country.

(3) A person shall not propose to be a shareholder of a deposit-taking microfinance institution unless that person is a citizen

(4) The Bank of Ghana shall issue directives to govern the operations of persons exempted under subsection (2).

(5) For the purpose of this Act, deposit-taking business means the business of a) taking money on deposit and making loans or other advances of money; and (b) financial activities prescribed by the Bank of Ghana for purposes of this definition.

Source: citifmonline.com
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