The lure for outrageous returns leading investors astray – CID Boss

The Director-General of the Criminal Investigations Department (CID) of the Ghana Police Service, Deputy Commissioner of Police (DCOP) Maame Yaa Tiwaa Addo-Danquah has cautioned the public against investment portfolios and products that promise outrageous returns.

“There are so many people who are losing money in the name of investing and some of them… people are giving money because they might have been told of higher returns,” DCOP Addo-Danquah, who is a member of the Association of Chartered Certified Accountants (ACCA) told Moro Awudu on Class 91.3FM on Tuesday, 6 November 2018 in an exclusive interview as part of ACCA’s Thinking Ahead series segment on the station’s Executive Breakfast Show.

She said: “Due diligence is critical before investing in any business”.

She explained that the higher the profits promised by any venture, the higher the risks of losing money, hence members of the public should not be blinded by higher profits to end up in risky businesses that will eventually lead to huge losses.

DCOP Addo-Danquah, therefore, advised prospective investors to conduct thorough research and do due diligence before parting away with money for investment.

Mrs Addo-Danquah advised the public to do their background checks about the owners of any company they wish to invest in, and also check if the company is registered at the Registrar General’s Department and properly licensed and regulated by the authorities.

Furthermore, she urged potential investors to check out the shareholders of the business, its directors, assets and whether the managers are capable of running the business profitably.

For her, good companies should have been paying their taxes and ultimately offer realistic returns that are sustainable.