The Finance Minister Ken Ofori–Atta, has stated that government will not pay customers of gold dealership company, Menzgold their locked up investment.
Describing the situation as disturbing, Mr. ofori Atta disclosed that the company has lots of customers from reputable state institutions such as the Ministry of Finance, Bank of Ghana and the military.
“…As I look at the Ministry of Finance and I see some people who are at the Ministry of Finance who have invested there, I look at the Bank of Ghana and I see some people who have invested there, and of course the military etc [who have invested there].”
He said such people invested their monies in Menzgold at their own peril.
Speaking at a ceremony to celebrate the 20th anniversary of the Securities and Exchange Commission, SEC, on Wednesday, Mr. Ofori-Atta said the customers of Menzgold were driven by greed since the returns on investment promised by the company was unrealistic.
“As we try to clean up the financial services center, I know the SEC has come down hard, strong and justifiably on Menzgold. But the issue with a company of Menzgold…it’s become an issue of greed as a people and our own behaviour, when we are so clear as educated as we might be that when we went there, there was no license.”
“I think it is not in the place of government to fund or get your money back for you. It was an obvious trap that you went into. Maybe we as an industry should also push the whole issue of education and empowerment so that people do not fall prey to that,” he added.
Background
Menzgold was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.
This, the SEC said this was in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
Despite initial protests, Menzgold complied with the directive. It has however failed to fully pay its numerous aggrieved customers the value on their gold deposits as well as their entire investments.
We’ll be watching Menzgold’s online platform – SEC
The Securities and Exchange Commission (SEC), has said it will be keeping a close eye on Menzgold Company Limited’s online ventures.
Menzgold Ghana is set to launch an online gold store, a buying and selling market platform, known as Menzgold Global Market on Monday.
While it remains unclear how the company will be operating online, the SEC said it will intervene if it determines Menzgold is working within its purview.
“We have also picked signals in public on the issue about an online business.
We are monitoring. As long as it offends our legal or regulatory regime, we will come into play,” the Head of Legal and Enforcement at SEC, Nii Oman Badoo said at a press soirée.
80% of DKM arrears settled – Ofori-Atta
This comes not long after the government announced that it had paid substantial amounts owed persons who lost their investments to Diamond Microfinance Limited (DKM), Finance, in what many considered a scam.
The Finance Minister, Ken Ofori-Atta, who made this known while presenting the 2019 Budget Statement and Economic Policy in Parliament last week, said about 80 percent of funds owed DKM customers had already been settled.
“Mr. Speaker, you would recall that DKM Diamond Microfinance Limited had its license revoked in February 2016 with considerable suffering imposed on depositors, without any meaningful response from the previous government. That has significantly changed. The official liquidator received 99,858 claims and the validated claims amounted to GH¢502 million. I would like to inform the country that out of the 99,858 claims, 79,708 (80 percent) have been settled and depositors have been paid,” the Minister said.
Source: citinewsroom.com
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DKM SHOULD HAVE SAVE AS DETERRENT TO OTHERS BUT YET PEOPLE WENT AHEAD TO EVEN INVEST IN AN INSTITUTION THAT DO NOT EVEN REGISTERED WITH BANK OF GHANA. THOSE SHOUTING HERE AND THERE, SHOULD LEARN HOW THE SYSTEM OF FINANCIAL INSTITUTIONS WORKS AND STOP SPEAKING RUBBISH. DKM WAS REGISTERED UNDER THE LAWS OF THE BOG, HENCE THEIR CUSTOMERS PAID. DEARING FOR CHEAP AND QUICK MONEY CAN LEAD TO THIS DESPONDENCY!!!
PLEASE NO ONE SHOULD TAKE KEN SERIOUSLY. WAS HE THE ONE WHO PROMISED THE DKM CUSTOMERS? NANA DID.SO LET NANA ADDO TELL THE GHANAIAN VOTER HE IS NOT GOING TO PAY.AS FOR KEN HE IS JUST A FM.I HOPE JDM WOULD NOT FORSAKE THE MENZGOLD CUSTOMERS AS THE FM BAWUMIA, NANA ADDO AND THE NPP WANT US TO BELIEVE.
WHO IS KWAME AKKUFO ? WAS THE FINANCE MINISTER IN GHANA WHEN LAWYER KWAME AKKUFO WHO HAS WORKED IN THE PRESIDENT'S CHAMBER BEFORE WAS ON JOY FM TELLING EVERYBODY TO INVEST IN MENZGOLD? NPP THINK THEIR ARE THE ONLY WISE PEOPLE IN GHANA.
SO IF THE CANT PAY THE CUSTOMERS SO THE ILLEGALLITY SHOULD GO UNPUNISHED?
KEN IM ASHAME OF YOU, SO YOU NO THAT THIS COMPANY IS ILLEGAL AND THE PRESIDENT FAMILY MEMBER (KWAME AKUFO) IS A LAWYER TO MENZGOLD.SO THE PRESIDENT KNEW ABOUT THIS SCAM AND HE KEPT QUITE.PLEASE SIR COME AGAIN.
@FAAKA IF YOU DON'T KNOW PLS LEARN WAE.THE REASON WHY DKM CUSTOMERS WERE PAID WAS BECAUSE THEY ARE REGISTERED UNDER BOG BUT MENSGOLD IS NOT REGISTERED UNDER ANY INSTITUTION IN GHANA.SO IF DKM GOES DOWN BOG HAS THAT RESPONSIBILTY TO PAY THEIR CUSTOMERS.GHANAIANS ARE NOW LEARNING VERY WELL UNDER THIS GOVERNMENT SO STOP YOUR 2020 WARNING BECAUSE NOBODY ASK YOU TO INVEST IN A PONZI SCHEME.
GREEDD IS WHAT HAS SENT YOU ALL INTO THIS PROBLEM. YOU ALLOW YOURSELVES FOR THIS SMALL BOY TO CH0P YOUR MONIES, NAM1 AND HIS MENGOLD HAS F00L YOU ALL GREEDYY LA ZY PEOPLE. BOG WILL NEVER PAY YOU EVEN A KOBO. GO FOR YOUR MONIES FROM NANA MANSAH AKA NAM 1.
People like you are afraid of the truth but you will hear that from me too. Your GR@@D did sent you to invest in Mengold. It is only a gr@@dy F00l like you at will accused SEC, BOG, and the NPP gov't .
What about Gold Coast Fund Management. Is like BOG and SEC are deceiving Ghanaians because the license banks are even worse. After all somebody who has invested in menzgold for 1 year would have gotten all his money and even more because higher interest.
Mr Minister, no Menzgold customer has asked you to pay them. You can't even pay us. What we find disgusting is the attempt you, BoG, SEC and your NPP surrogates are making to disgrace Menzgold and giving them the PONZI tag in order to collapse the company. Please, take your hands off Menzgold and let them solve our problems for us. If you can't pay us, please, don't ridicule us. You say Menzgold customers are greedy? Look at the SUPER GREEDY interest rates the banks you have created are offering customers. No wonder the banking halls of your CONSOLIDATED BANKS are empty and the cashiers are are dozing on their desks.