Assin Central MP, Kennedy Agyapong, has backed the government’s moves to clean up the financial space amid the controversy surrounding the minerals trading company, Menzgold Ghana Limited.
Mr. Agyapong said the current New Patriotic Party (NPP) administration was wary of how the DKM saga, among other struggles within the financial sector, affected the National Democratic Congress (NDC) ahead of the 2016 elections.
He likened the gravity of the rot within Ghana’s banking situation to the Ponzi scheme ran by one Bernie Maddof, an American former stockbroker, admitted fraudster, and convicted felon who is currently serving a life prison sentence for charges related to his massive Ponzi scheme that cost 64 billion US dollars.
“It [the Bernie Maddof scandal] is no different from what is happening,” Mr. Agyapong remarked on Adom TV.
He acknowledged that the actions of the government to sanitize the sector was sparking some panic, but he said some of the affected persons needed to learn from their greed.
“Whether panic today or tomorrow or yesterday, they have to feel it so that next time, when someone offers an investment, you are more careful; because of greed you chase after 12 percent monthly interests.”
Mr. Agyapong also made reference to Menzgold, which has temporarily halted parts of its operations on September 13, 2018, following a directive from the Securities and Exchange Commission (SEC).
This was after several warnings from the Bank of Ghana (BoG) which went unheeded.
But some customers are protesting against the suspension of the operations of Menzgold saying their investments were at risk, and that government was unfairly pursuing a Ghanaian business.
We will storm Jubilee House naked over Menzgold brouhaha Customers
Mr. Agyapong retorted that persons blaming government “should stop talking.”
“You can’t fight the Securities and Exchange Commission because we need to regulate this. If not, we’ll get to the point where it is like DKM, which we in the NPP campaigned on and we have learnt our lessons.”
“If we just sit for some financial institutions to mess up, they [the people] will blame us,” the MP stated.
Mr. Agyapong spoke about an instance where some marketing executives of Menzgold approached him to also invest in the business.
According to him, he warned them to stay way from him since he was not interested in doing business with them.
SEC orders Menzgold to suspend ‘illegal’ trading
Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by SEC.
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectables from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.
This, the SEC said, is 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.”
Kwesi Pratt blasts Menzgold; dares them to sue if they’ve a case
Managing Editor of the Insight Newspaper, Kwesi Pratt Jnr, has also rubbished assertions by some Menzgold Ghana Limited customers that the government is trying to sabotage the gold trading company.
He said he could not get his head around the fact some Ghanaians feel Menzgold should be given special treatment by regulators when laws exists for everyone’s business in Ghana.
“How can we sit here and say we cannot touch a company when it is not following regulations because it will hurt people? Which business, when touched won’t affect people,” Mr. Pratt retorted on Peace FM’s Kokrokoo.
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I dont blame Pratt n Ken for insulting Menzgold customers , becaos all of you were here when the company was operating for last 5yrs
I do not blame those criticizing Ken and advising him that he should pray for the government to win power the second term. They came to meet MenzGold and to be honest all these mess were brought about by the previous government, however, their communicators always throw dust into the eyes of Ghanaians thereby obscuring them from knowing the truth. I will proceed by asking these few questions; Who gave license to them to operate? Did they pass through the proper procedure? Who were the governor of BOG and the government in power by then? It seems we don't want our system to work but are always supporting those exploiting the system. What kind of business in the world give such high percentages? Bank of Ghana started issuing out warning last year. Please let us love our country and allow the right thing to be done. I will advice the government to be circumspect in the way they go about it so Ghanaians who have invested do not loose their monies.
Some Ghanaians hate to be told the truth. The fact is that not all that glitters is gold, you may be receiving 12 percent on your investments today but ask yourself if that will continue to be sustainable. We must not do away with history which has a lot of unfortunate stories to tell. If Menzgold do not have a licence to operate in the business for which that entity is being ordered to stop, what prevents it from satisfying the processes and requirements that would enable it to acquire the appropriate licence. On the other hand, if it has, let Menzgold produce that licence and then we can agree with its management that there is a ploy to collapse that business. No country can operate effectively and efficiently on lawlessness.
I have a very big problem with the regulators of MenzGold. If indeed MenzGold is operating without a license then the main sanction should be for them to prosecute MenzGold for operating all these years without a license. The closing down of the company will have been the natural consequence. The failure of these regulators to do this but to use the unorthodox method of closing the company is unlawful and MenzGold should fight them to its logical conclusion. It is bringing out the interesting fact that the regulators are aware that using the lawful procedure will land them into the trouble of sitting idle all these years for MenzGold to operate.
Ken you are too mischievous. Are you not aware that you have already created another DKM by the fear and panic BoG, SEC and people like you have created among customers of MenzGold? From the communication we are getting from you and the state institutions your government may not rule Ghana for more than two terms. The second coming of Nana is even questionable. Pray very hard for Ghanaians to give your party and Nana the nod for a second term.