About 1.8 million customers are frustrated about the inability of the company to pay back their invested capital.
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Aggrieved Menzgold customers appeal to Nana Addo to retrieve their locked-up cash
Aggrieved customers of Menzgold Ghana whose investments have been locked up in the company have now turned to President Nana Addo Dankwa Akufo-Addo to help them retrieve their fortunes.
Aggrieved Menzgold customers
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The disgruntled customers want the President to intervene in retrieving their locked-up cash while the criminal court proceedings against Nana Appiah Mensah popularly known as NAM1, Chief Executive Officer (CEO) of the defunct company continue.
Convener of the Menzgold Customers, Fred Forson, speaking to Accra-based Citi FM assured that measures are being taken to resolve the matter.
He said "His Excellency, the President, on compassionate grounds, should also give action to the petition that we submitted to him. That he should order a bailout for affected customers while the criminal proceedings run in court.
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"We want to say that customers should rest assured that leadership is doing everything possible to ensure that we retrieve the very principle that we invested in Menzgold. We want them to keep hear."
Godfred Yeboah Dame assures customers
Meanwhile, the Attorney General, Godfred Yeboah Dame, has assured customers of the defunct gold trading company, Menzgold Ghana Limited, of justice.
He described the defunct dealership firm as a Ponzi scheme that has left many of its victims homeless, with broken marriages, and some have lost their lives.
Menzgold operates illegal - Ken Ofori-Atta
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On Wednesday, November 21, 2018, the Minister of Finance, Ken Ofori-Atta, made it clear that the government was not under any legal obligation to pay persons whose money had been locked up in Menzgold.
Speaking at the third capital market conference and 20th-anniversary commemoration of the Securities and Exchange Commission (SEC), he said some of the affected persons were members of staff of the Bank of Ghana (BoG), the Ministry of Finance, the military, and other reputable institutions across the country.
Ofori-Atta stated that the company had no licence from requisite state bodies to operate.
He said much as the issue was disturbing, the government was not obligated to investors in the gold dealership, which was offering as much as 120 percent profit per annum.
Background to Menzgold shut down
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The Securities and Exchange Commission (SEC), on September 12, 2018, directed Menzgold Ghana Limited to shut down its investment operations with immediate effect for contravening the Securities Industry Act, 2016 (Act 929).
The SEC order also warned Menzgold to halt advertising its investment business and desist from creating new contracts with depositors.
According to a letter addressed to the Menzgold CEO, NAM1, investigations conducted by the regulator found that Menzgold's business, which involved the purchase/deposit of gold by the public and contracts issued with guaranteed returns with clients, was a capital market activity which could not be conducted without a valid licence issued by the SEC.
The letter, dated September 7, 2018, and signed by Paul Ababio, the Deputy Director-General of the SEC, warned that the failure of Menzgold to comply with the directive would lead to the SEC employing other relevant measures under the law to enforce compliance.
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