Business News of Wed, 8 Aug 201812

Bank of Ghana’s warning ‘unfortunate’ – Menzgold

The management of trading company Menzgold Ghana Company Limited has expressed grave concerns over the Bank of Ghana’s (BoG) threat of taking punitive actions against them.

The company said the BoG’s warning was ‘unfortunate.’

The central bank had indicated 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 statement issued by Menzgold on Tuesday August 7, 2018, and sighted by citinewsroom.com, the company expressed shock over the turn of events saying that the central bank was fully aware of its operation and wondered why it would want to whip the crack against them.

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“Menzgold 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 operations would still issue such a statement”, the statement said.

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).

The company in the statement, however, denied taking deposits and insisted that it was operating within the remits of its license; a claim the BoG had earlier questioned.

Menzgold further called for calm among its customers and assured them that their investments were safe.

“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. 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 opened to the Bank of Ghana and any other organization that would want to seek clarity on our business.”

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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.

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.

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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

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(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.

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