Insists Its Operations Are Legal
The management of gold trading company, Menzgold Ghana Company Limited, has expressed grave concerns over the Bank of Ghana’s (BoG) threat of taking punitive actions against them.
In a statement issued by Menzgold yesterday August 7, 2018 and sent to The Herald, the company’s management, expressed shock over the turn of events, saying that the central bank was fully aware of its operation and wondered why it would want to whip the crack against them.
The company, said the BoG’s warning was ‘unfortunate.’
The central bank, had indicated that it was moving against Menzgold.
According to the regulator, Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits.
“Menzgold finds it unfortunate and disparaging that the Bank of Ghana with whom we have had a number of engagements over the years and taken them through our business operations, would still issue such a statement”, the statement said.
Earlier in the day, Chief Executive Officer of Menzgold Ghana Company Limited, Nana Appiah Mensah, described the Bank of Ghana (BoG) claim as a ‘joke.’
His remark, followed a public notice by the central bank, indicating that it was moving against Menzgold.
In a post on social media, Nana Appiah, called the bluff of the central bank.
“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 to use our dear Menzgold to cover up. I beg make we think!” he tweeted.
The central bank, had claimed that Menzgold was in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
The company, however, denied taking deposits and insisted that it was operating within the remits of its license; a claim the BoG, had earlier questioned.
Menzgold, further called for calm among its customers and assured them that their investments were safe.
“Unfortunate and insensitive as the statement may be, we are resolved and even keener to continue to deliver the best of service to our customers in Ghana and beyond. The company is growing in strength and expanding with offices recently opened in United Kingdom, Spain and soon in Nigeria. Our doors as always are opened to the Bank of Ghana and any other organization that would want to seek clarity on our business.”
What the Deposit-Taking Institutions Act, 2016 (Act 930) says
- Subject to this Act, a person shall not carry on a deposit-taking business in or from within the country unless that person is a body corporate formed under the laws of this country.
- A person that is not a body corporate formed under the laws of the country may, with the prior written approval of the Bank of Ghana, carry out a deposit-taking business in or from within the country.
(3) A person shall not propose to be a shareholder of a deposit-taking microfinance institution unless that person is a citizen
(4) The Bank of Ghana, shall issue directives to govern the operations of persons exempted under subsection (2).
(5) For the purpose of this Act, deposit-taking business means the business of a) taking money on deposit and making loans or other advances of money; and (b) financial activities prescribed by the Bank of Ghana for purposes of this definition.
Below is the full statement from the Menzgold
7TH AUGUST 2018
FOR IMMEDIATE RELEASE
The Management of Menzgold Ghana, has sighted with deep indignation a notice from the Bank of Ghana issued to the general public on 6th August 2018.
Menzgold Ghana, would like to assure our customers that we are a law abiding organization working within the remits of our license.
We hereby state emphatically that we DO NOT accept deposits from customers or carry on a deposit taking business in Ghana.
Our activities are not within the scope of the Banks and Specialized Deposit-Taking Institutions, Act, 2016, Act 930. It therefore, CANNOT be said that we are in breach of the Act.
The activities of Menzgold Ghana Limited, is restricted to allowing customers to purchase gold or deal in gold as an alternative investment. The Bank of Ghana is clearly aware that these activities are outside the scope of The Banks and Specialized Deposit-Taking Institutions, Act, 2016, Act 930.
Menzgold Ghana, finds it unfortunate and disparaging that the Bank of Ghana, with whom we have had a number of engagements over the years and taken them through our business procedures would still issue such a statement.
Unfortunate and insensitive as the statement may be, we are resolved and even keener to continue to deliver the best of service to our customers in Ghana and beyond.
Management assures the general public that doing business with Menzgold is safe. The Company, is growing in strength and expanding with offices recently opened in United Kingdom, Spain and soon in Nigeria.
Our doors as always are open to the Bank of Ghana and any other organization that would want to seek clarity on our business.
That said, it is imperative that Government and other State Intuitions support indigenous business initiatives to thrive in this economy, while putting in the correct supervisory mechanisms to ensure that they operate within the remits of the law.
We pray that authorities will show more interest in building, nurturing and supporting business growth in an enabling atmosphere as anything to the contrary could be detrimental to the economy of the Nation.