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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NPP people can insult oo. Menzgold customers were driving by greed so Government will not come to their aid, but DKM and Jasper Motors customers were not driving by greed and therefore Government saw the need to bail them out of their predicament. Very soon ofori Atta will laugh at the wrong side of his teeth. Just a little time.
between menzgold customers and you mr minister who is more greedier? why didnt you stay with your data bank and other businesses but also decided to join politics and further became the finance minister? this is what i call GREED not an individual who decides to invest his hard earned money
why should you even talk about it? whose business is it if they saved with the wrong person? who cares?
@ Rebecca Ntsiful, i second you my sister, we don't need their sympathy, if they want to drain every bank and institution, let them continue doing so their time will come, how much does one get when he/ she saves at the bank? not to talk of fixed deposit too, but look at the interest rate when applied for a loan, hmmmmm, Mr. President and your ministers should come clean before it too late.
@ dargty, is Kofi Amoabeng not an Akyem man from Abuakwa? You the students of Democratic Ideology Institute have tall mountain to climb. You have done tribal politics for years but is not helping you. Now, there is no Ewe man in NDC National Executive. What are you going to tell Ghanaians this time. shame
IS KEN OFORI ATTA AWARE THAT LAWYER KWAME AKUFFO WAS LEGAL TEAM MEMBER OF NPP IN 2013?DID THIS LAWYER TOLD THE CUSTOMERS OF MENZGOLD ON JOYFM THAT MENZGOLD WAS DOING LEGAL BUSINESS IN GHANA? NPP IS A ***barred word*** PARTY
PLEASE LAWYER KWAME AKUFFO IS KNOWN NPP MEMBER AND HE WAS ON NEWS FILE ON JOY FM DEFENDING A CLIENT. HE OUGHT TO HAVE KNOWN DOES NOT HAVE PROPER LICENCE.THE CUSTOMERS MUST BRING ACTION AGAINST THIS TYPE OF LAWYERS. HE GAVE THIS ASSURANCE ON RADIO.MY POINT IS THAT ,THE FM, THE PRESIDENT AND THE AG HEARD THIS LAWYER BUT REFUSE TO CLOSE MENZGOLD DOWN.SO IF A ROBBER IS RUBBING PEOPLE FM AS SENIOR GOVERNMENT OFFICIAL WOULD COME TO THE PUBLIC TO SAY THAT HE KNEW THIS IS A CRIMINAL BUT DECIDED TO WATCH AND SEE HOW MANY PEOPLE WOULD FALL TO THE SCAM.TERRIBLE
Ken should pay depositors money at consolidated bank and stop making noise
Isaac, I don't want to say you sound childish and gullible. First of all, the name Akuffo is not restricted to the president's family alone because there are countless families inn Ghana that carry the name. Even if the lawyer relates the president, does is mean he could not work for a client who approaches him? Again, the company has been in existence for more than 4yrs......was it Akuffo addo and the finance who gave them them the non-existence license to work illegally? Now I know you guys don't learn because just recently DKM and GOD IS LOVE are still in memory for similar fraud, and you put your money without the necessary checks and you are here blaming someone for your negligence.
Please Bank of Ghana and the NPP government, kindly come to the aid of the numerous depositors of licensed Micro finance institutions that collapsed under the watch of the incompetent NDC regime. Institutions such as NOBLE DREAM, MONEY LINK, ASN etc