BoG to penalise Menzgold

The Bank of Ghana (BoG) has revealed that its investigations show that gold-buying firm, Menzgold, accepts deposits although it has not been licensed to do so, and, thus, intends penalising the company for the breach.

“What is clear to us is that they have the system that accepts deposits from the public.

“We are discussing with the ministry of lands and natural resources who originally gave them their licence,” Governor of the Bank of Ghana, Dr Ernest Addison, told journalists on the sideline at a press conference to release the prime rate of Monetary Policy Committee (MPC) of the BoG on Monday, May 21, 2018.

The Bank of Ghana’s latest intention to punish Menzgold follows two previous warnings last year, to the public against dealing with Menzgold as far as deposit taking is concerned.

The central bank also warned Menzgold to stop payment of dividends but to no avail.

In its latest warning, the central bank said in a statement that it wishes “to notify the general public that in spite of its caution to Menzgold Ghana Company Limited to desist from solicitation, receipt of money and payment of dividends to its clients, the company was still doing things to the contrary.

But the company, according to the bank, was still engaged in these activities contrary to section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

“The general public is hereby informed that Menzgold Company Limited is not licensed by the Bank of Ghana and has no authority to engage in the solicitation, receipt of money and payment of dividends to its client.

“Accordingly, the general public is cautioned that anyone who transacts any of the above-mentioned business with Menzgold Ghana Company Limited, does so at his/her own risk and Bank of Ghana will not be liable to such clients and depositors in the event of loss.

”Following the first two warnings, Menzgold owner, Nana Appiah Mensah, refuted the deposit-taking claims through a tweet.

In a rebuttal, Nana Appiah Mensah rubbished BoG’s statement, calling it needless.



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