Menzgold dares Bank of Ghana

Management of Menzgold Ghana Limited, a commodity trading company, has indicated that its attention has been drawn to a notice issued recently by the Bank of Ghana (BoG) to warn members of the public against depositing monies with Menzgold.

The Central Bank, in a notice on Monday, August 6, this year, said that Menzgold’s deposit-taking activities are in breach of Section 6 (1) of Banks and Specialized Deposit–Taking Institutions Act 2016 (Act 930).

“The Bank of Ghana wishes to notify the general public that in spite of several cautions to Menzgold Ghana Company Limited to desist from the solicitation, receipt of money and the payment of dividends to its clients, the company persists in its deposit-taking activity in breach of section 6 (1) of the banks and Specialised Deposit-Taking Institutions Acts, 2016 (Act 930). The Bank of Ghana wishes to reiterate that Menzgold Ghana Limited is not licensed and has no authority to engage in the solicitation, receipt of money or investments and the payment of dividends or returns to its clients.

The Bank of Ghana is in discussions with other relevant regulatory authorities towards the taking of appropriate action against 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.”

However, in a sharp rebuttal on Tuesday, management of Menzgold said the company, which is law-abiding, works within the remits of its licence.

Chief Executive Officer (CEO) of Menzgold, Nana Appiah Mensah, in a message on his twitter page wrote, “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!”

According to some industry analysts, such admonitions by the regulator are meant to insulate it from any legal action in case the company fails to deliver on its promises to customers or collapses.