Today in History: Menzgold collapse affecting Databank – CEO
Group CEO of Databank, Kojo Addae-Mensah
Due to the collapse of gold dealership firm, Menzgold in 2019,investors in Databank and other investment firms decided to withdraw their monies over fears of losing them.
Read full articleThis was according to Group Chief Executive of investment firm, Databank, Kojo Addae-Mensah, who revealed that the collapse of Menzgold was negatively affecting his firm.
“What happened was that after the Menzgold issue, people were asking themselves where else they have investment and then they started withdrawing out of fear of losing it. We saw a spike in withdrawals. It was going up rather than the usual. This is out of the experiences they had elsewhere because they are unable to have access to their funds,” he said.
Read the full story originally published on March 4, 2019 by StarrFm
The Group Chief Executive of investment firm Databank, Kojo Addae-Mensah, has revealed that the collapse of gold dealership firm Menzgold is having an effect on his firm.
According to him, some investors have panicked into withdrawing their investment with Databank out of fear of losing their monies as a result of the experiences of Menzgold customers.
Speaking to Starr News, Mr. Addae-Mensah said Databank is embarking on confidence-building measure dubbed ‘Time with the CEO’ to assure customers that their investment is safe with them.
“What happened was that after the Menzgold issue, people were asking themselves where else they have investment and then they started withdrawing out of fear of losing it. We saw a spike in withdrawals. It was going up rather than the usual. This is out of the experiences they had elsewhere because they are unable to have access to their funds,” he said.
Customers of Menzgold have had their funds locked up since September last year after the Securities and Exchange Commission and the Bank of Ghana ordered them not to be taking on new customers.
The company has subsequently been shut down while its CEO Nana Appiah Mensah is facing trial in Dubai after he was embroiled in a gold deal.
Government has however given the assurance it will liquidate the properties of the company in order to refund customers their investment.
