Government won’t pay a pesewa to Menzgold customers – Finance Minister

Not a pesewa of government funds would be used in paying any clients of tottering gold-trading firm Menzgold Company Limited, Finance Minister Ken Ofori-Atta has said.

Speaking at the 20th-anniversary ceremony of the Securities and Exchange Commission (SEC) on Wednesday, 21 November 2018, Mr Ofori-Atta said all those who invested in Menzgold were greedy and did so at their own peril.

“As we try to clean up the financial services sector, I know the SEC has come down hard, strong and justifiably on Menzgold.

“But the issue with a company of Menzgold … it’s become an issue of greed as a people and our own behaviour when we are so clear as educated as we might be, that when we went there, there was no licence.

“I think it is not in the place of government to fund or get your money back for you.

“It was an obvious trap that you went into.

“Maybe we, as an industry, should also push the whole issue of education and empowerment so that people do not fall prey to that”, he added and wondered how enlightened people could fall into such a trap.

“… As I look at the Ministry of Finance and I see some people who are at the Ministry of Finance who have invested there, I look at the Bank of Ghana and I see some people who have invested there, and of course the military etc., [who have invested there].”

Meanwhile, members of the Coalition of Aggrieved Customers of Menzgold Company Limited have issued a notice to demonstrate on Tuesday, 27 November 2018 against the management of the gold-trading firm to demand full payment of their principal investments locked up with the company.

The customers say the company has reneged on its several promises to pay them an agreed 15 per cent of their principal.

Addressing the media on Wednesday, 21 November 2018, Chairman of the Coalition, Timm Binob said the demonstration is to register their displeasure against the company.

He said: “Date for our upcoming demonstration in Accra is Tuesday, 27 November 2018 and the time is 7:00 am prompt.

“Venue is at the Obra Spot, Kwame Nkrumah circle. Following the impasse between Menzgold Company Limited, the Securities and Exchange Commission (SEC) and the Bank of Ghana; Menzgold Ghana Limited, after series of meetings, promised to pay 15 per cent of our principal as the first tranche to fulfilling their promise and obligations by paying fully the remaining percentage to us within 90 days beginning from 9 October 2018 but they haven’t paid.”

Menzgold has been unable to pay its clients their dividends due to an ongoing battle with SEC and the BoG over its operations. While the state institutions say the company has not been licensed to take deposits, Menzgold insists it does not take deposits and does not answer to the two institutions.


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