MenzGold saga: How we arrived here

MenzGold Pic File photo

Sat, 12 Jan 2019 Source: Abdul Hayi Moomen


Our people say, the speed of a man is determined by what is chasing him. Let me go straight to the point by first asking a question. If a man invites death to himself, when we go to his funeral, do we go there to mourn or to celebrate?

Nyaba, the finances of more than 1 million citizens of our chiefdom have been killed by a monster of sorts. People call it MENZGOLD.

However, instead of mourning with the financially "bereaved" persons, many of our chiefdom's people have resorted to mocking at, and laughing their lungs out at the "bereaved". They say, the "bereaved" persons' greed should be blamed for the death of their finances.

Nyaba, before I tell you what is contained in my skull, let me first explain to you how we arrived here.

Nyaba, I have been carefully looking at reports issued by the big bank of our chiefdom on the activities of Menzgold from 2014 to 2017. In all the reports, the big bank clearly indicated that people should stop depositing their hard earned, or borrowed, or even stolen money with MENZGOLD. Had individuals who decided to do business with the company listened to the Big bank, they would not have probably found themselves in the situation where today they cannot retrieve their deposits from the company.

MENZGOLD began to face challenges on September 7, 2018, after the Securities and Exchange Commission (SEC) directed it to suspend its gold trading operations. The SEC said it decision was, based on the fact that Menzgold had been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns to clients without a valid licence from the Commission, which clearly violated the laws of our chiefdom.

Nyaba, however, SEC said MENZGOLD could continue to do it's other businesses of purchasing gold from small-scale miners and exporting them.

As soon as the directive was issued, people who had given the hard earned, borrowed, or stolen money to MENZGOLD, panicked and went to pitch camp at the offices of MENZGOLD asking to be given back their cowries, right there, right then.

Unfortunately for such "MENZGOLDERS" the company failed to give them a y cowries - not even coins.

The frustrated "MENZGOLDERS" many of who had turned a deaf ear to the big bank's warnings, then turned their eyes, noses, ears and nostrils towards the national chief waiting to see, breath in, hear, or smell some good news of compensation. Unfortunately, on this matter, the national chief, would not be intimidated to make any comments on this matter. He perhaos, became a dead goat.

I heard someone say on state TV that she had invested as much as 700, 000 Ghana cowries with MENZGOLD another said he had put all the money meant to pay his children's school fees in to the MENZGOLD kitty.

Many of the affected MENZGOLDERS accused the current national chief, the former sexy eyed national chief, the national chief Imam and the Otumfuor for the trouble they find themselves in.

They say the pictures of Nana Appiah with these important personalities gave the impression that he was doing a legitimate business.

Nyaba, in 2014, the big bank sent some of its boys and girls to go and find out some issues at what was then known as MENZBANK which was then operating as a microfinance company under the guise of gold trading and illegally using the name “Bank”.

MENZBANK was asked to stop operating as a "bank".

Nyaba, a year later, the big bank published a list of companies that were operating illegally. Right there on the list was MENZBANK. It was after that list was published that MENZBANK changed its name to MENZBANC the "K" was replaced with a "C".

Having noticed that the company was still doing business despite the many warnings, the big bank issued a notice warning the general public against the deposit-taking operations of MENZBANC.

A year later, MENZBANC wrote a letter to the big bank in which they said they were not engaging in deposit-taking activities. In the same year, 2016, the Bank of Ghana, the big bank, contacted Minerals Commission and Precious Minerals Marketing Company (PMMC) on the licence status of Menzbanc. Minerals Commission confirmed that the company had a licence only “to purchase gold locally… and to export same”. However its licence with PMMC had expired.

Following this, the big bank issued another caution letter to the company to desist from taking further deposits. It was at this point that Menzbanc then changed its name to Menzgold.

In the letter notifying the big bank of the change of name, the new MENZGOLD also informed the big bank that it has a subsidiary by name “Brew Marketing Limited” where clients were directed to go and purchase the gold and deposit it with Menzgold for “dividend”.

Nyaba, contrary to popular belief, the big bank did not go to sleep on the job, they investigated the activities of the new MENZGOLD by enrolling on the company’s “Gold Vault market. During their first purchase, the big bank reports that no gold was seen throughout the transaction. Menzgold collected the cash with the explanation that they would purchase the gold from Brew Consult.

Exactly a year before the troubles at MENZGOLD began, the Minerals Commission wrote a letter to MENZGOLD pointing out to them that their activities were in breach of the law and that Brew Marketing had not been registered as a licensed buying agent.

Nyaba, after the series of investigations, the big bank observed that the activities of Menzgold amounted to engaging in illegal deposit-taking.

After that, one thing led to the other and we arrived here.

Columnist: Abdul Hayi Moomen