Menzgold saga; We don’t have the power to intervene – BoG

The Bank of Ghana says it does not have the power to intervene in the Menzgold saga.

Speaking on the Super Morning Show on Joy 99.7 FM Tuesday, Second Deputy Governor of BoG, Mrs Elsie Awadzi said “we don’t even have the power to intervene; we didn’t regulate it, there is no way we are going to do anything. We don’t have anything to do with Menzgold unfortunately.”

She said the Bank of Ghana “has been very clear for a long while about the fact this was an unlicensed operation.”

The Bank of Ghana on August 6, 2018, issued a public notice cautioning the public against doing business with Menzgold Company Limited.

BoG, according to the notice, indicated that it is working with other agencies to take appropriate action against the gold buying firm.

The move angered Menzgold who describe the action by the central bank as unfair.

In a statement issued a day after the public notice published by BoG, Menzgold maintained that they are a law-abiding company "working within the remits of our license."

But the Chief Executive Officer of Menzgold, Nana Appiah Mensah, in a response to BoG on Twitter 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 1 to use our dear Menzgold to cover up… I beg make we think!”

SEC orders Menzgold to shut down

Earlier, the Securities and Exchange Commission ordered gold trading firm, Menzgold Ghana Limited, to suspend their operations with the public with immediate effect.

In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.

The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.

The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.

Finance minister rules out bail-out for Menzgold customers

Finance Minister Ken Ofori Atta also stressed that government has no intention of bailing out customers of beleaguered investment company, Menzgold.

“It is not in the place of government to refund or get your money for you” he said.

The comment was the strongest indication yet shown by the government following growing calls by some customers for compensation from the government if Menzgold fails to refund investments.