Menzgold Frightens Banks & Others

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Dirty Media Attacks Launched With Fake Report To Kill Company

Impeccable sources within the banking industry, have revealed plans to shut down the operations of the gold-buying firm, MenzGold, using coordinated media attacks and officials of Bank of Ghana (BoG), claiming the company is acting illegally.

The plan, has seen series of publications by particular media houses speaking with the BOG officials, the Minister of Lands and Natural Resources, the Minerals Commission and Securities and Exchange Commission (SEC) in a calculated attempt to have the gold-buying firm closed down.

The Herald is informed that, the media attack is at the behest of commercial banks and Savings and Loans companies in the country, whose fear is at the rate at which MenzGold is receiving patronage, might lose a huge chunk of their clients and forced to fold up their operations.

Most Ghanaians are currently rushing to MenzGold to purchase pieces gold, of as a means of saving their monies, instead of going to the commercial banks to keep them, but gets nothing by way of interest on their money. This is in spite of the fact that the monies kept with these banks, are issued out as loans with huge interests to the borrowers.

In the case of MenzGold, these pieces of gold are either sold at a later date to the same company or others for a huge profit margin; something they wouldn’t get from the commercial banks.

In other instances, MenzGold, signs agreement with the purchasers to retain their gold, trade with it on their behalf and pay them a handsome percentage on their investment, something the commercial bank, would not give them by way of interest.

The MenzGold presence and operations, The Herald learnt has led many people to empty their bank accounts and rushing to the company to make money on their saving, and so far many prominent individual have described the arrangement as lucrative revealing that the gold trader has not defaulted in its monthly payment obligations to them.

This paper is informed that, the most threatened, are the Savings and Loans companies. They are not meeting their targets as many people are rather going to MenzGold with their money.

Already, the commercial banks, are struggling to meet the central bank’s demand to have GH¢400 million minimum capital requirement by December 2018 or have them shutdown.

This situation has led to media campaigns, with media houses and journalists to rundown the company, saying its operations are illegal, because it had no license to carry out “Commodity Banking”, a charge MenzGold’s Chief Executive Officer (CEO) Nana Appiah Mensah, has denied many times, including demanding meetings with BOG to explain itself.

Recently the Bank of Ghana (BoG) indicated that it would soon take action against Menzgold after preliminary investigations found it was taking deposits without approval, however, in a quick rebuttal, the CEO of Menzgold, rubbished the statement, calling it needless.

In a social media post, Nana Appiah, responded to BOG’s incessant claim, that Menzgold takes deposit asking “So what happened to the presumption of innocence under article 19(1)c? MENZGOLD DOES NOT TAKE DEPOSITS. WE ARE LAW ABIDING. Respectfully, he who alleges must immediately discharge the burden of proof. Unsubstantiated utterances are needless.  The law is what the judge says it is.”

Nana Appiah Mensah, is also the CEO of the Zylofon conglomerate, whose unit, Zylofon Cash, is sponsoring the Ghana Premier League in a multi-million deal.

Just last week MenzGold, opened its Spain office in Madrid to be known as MenzGold Espana with huge attendance of Spanish businessmen. The office is to serve the European market. Other offices are expected soon.

Responding to questions at MPC press conference Monday, BoG Governor, Dr Ernest Addison, said that the Central Bank, would collaborate with the Lands and Natural Resources Ministry to finalize on Menzgold.

“What is clear to us is that they have the system that accepts deposits from the public. We are discussing with the Ministry who originally gave them their license,” the Governor said.

BoG in the latter part of last year, warned the public not to deal with the institution, because it was not licensed to take deposits.

Meanwhile, some media houses are in a full attack speaking to various state agencies which are rather promising to take actions.

One such body is SEC, which spoke in an interview with Joy Fm Business reporter saying, it will soon take action on MenzGold, because it has not given the firm any license to operate.

The media claims to have seen leaked documents saying MenzGold that the company’s dealings could be likened to derivatives trading which requires approval from the SEC.

Director General of SEC, Rev. Daniel Ogbarmey Tetteh, was quoted by JoyBusiness, as saying “MenzGold doesn’t have a license from SEC and I think we have put out a notice to that effect.”

He said, “We have some people asking about MenzGold and we did say that they don’t have a license from SEC.”

I can tell you that SEC hasn’t issued any license to MenzGold. Their operations have been looked at and I believe at the right time the necessary directives would be given,” he added.

Saying media house has quoted Bank of Ghana as having also indicated that it would soon take action against the said firm as it is dealing in unlicensed “deposit-taking.”

It went on to quote the Minerals Commission and Ministry of Lands and Natural Resources have all told JoyBusiness that, the license given to MenzGold, only allows them to buy and export gold.

Interestingly, JoyBusiness, is yet to make the leaked document on MenzGold public to have its authenticity tested, but it has gotten most regulatory bodies and government officials speaking to contents they are yet to read and appreciate.

More to come!

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