MENZGOLD TO BE PENALIZED BY BANK OF GHANA

The Bank of Ghana has said 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 Lnads and Naturals Resources] who originally gave them their licence,” Governor of the Bank of Ghana, Dr Ernest Addison told journalists during the Q&A session of the Monetary Policy Committee on Monday, 21 May.

The BoG’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 second warning, the banking regulator said in a statement that it wishes “to notify the general public that in spite of the caution to Menzgold Ghana Company Limited to desist from solicitation, receipt of money and payment of dividends to its clients, the company is 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 (NAM1) refused the deposit-taking claims through a tweet.

Source: Ghana/ClassFMonline.com