Ace Ankomah questions Menzgold’s defense after deposit-taking allegation

Private legal practitioner, Ace Ankomah, has called on the managers of Menzgold Ghana to be mindful of the law when defending the activities of the company.

Speaking on Accra-based Joy FM, he explained that the company’s business module breaks at least 3 regulations. According to him, the 3 are the Company’s Act, the Minerals, and Mining Act and the Securities Industry Act.

“Let’s get it right. It started as Menzbank, with a ‘K’, Bank of Ghana stepped in; they changed their name to Menzbanc, with a ‘C’; Bank of Ghana stepped in; they changed their name to Menzgold, with metal. Let’s stop this molly cuddling these issues. We can see the thing. If it walks like a duck, quacks like a duck, sleeps like a duck, it is a duck. Under the company’s act alone, as a private company, you cannot take deposits – whether interest-bearing or fixed. The law says that clearly.”

The Bank of Ghana earlier issued a public notice cautioning the general public against depositing cash at Menzgold.The gold hub subsequently issued a statement denying that they accept deposits.

However, speaking on the matter, Ace Ankomah said Menzgold, registered as a private company, has been overstepping its operational boundaries for at least two years now.

“A private company cannot invite the public to deposit monies. Period. It is so critical that it must be stated under Section 9 in [the] regulations [of] a private company. So if you are not a public company, you cannot invite the public to bring deposits to you. Period. The exemption, quasi-public, is if you get a banking or a specialised deposit licence.”

He then referred to the Minerals and Mining Act of 1994 (Act 475), which among other things, regulates mining of precious minerals in Ghana.

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“Under the Minerals and Mining Act, you cannot deal in, let’s say gold, except you, have a licence. It’s an offence. You will go to jail. And if you get a licence, you cannot operate outside the licence,” he said.

This is contrary to suggestions by some that Menzgold’s operation occupies a grey area because the law does not adequately regulate the commodities market, Ace Ankomah said there is such a law – the Securities Industry Act, 2016.

“The Securities Industry Act defines a security to include derivatives. It defines derivatives as when you are using commodities. If anybody says the commodities market in Ghana is unregulated…with due respect the law provides for it,” he said.

Ace Ankomah questions Menzgold’s defense after deposit-taking allegation

Private legal practitioner, Ace Ankomah, has called on the managers of Menzgold Ghana to be mindful of the law when defending the activities of the company.

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