MP CAUTIONS GOVT OVER MENZGOLD

The New Patriotic Party member of parliament for Effutu constituency in the central Region Alexander  Afenyo-Markin has warned that government could suffer political backlash if people lose their monies in an investment firm believed to be operating illegally.

The firm, Menzgold Dealership, was directed to shut its gold operations after a regulator, the Securities and Exchange Commission said it was operating without a licence.

Anxious customers including pensioners, politicians, pastors, senior security officials and bankers have been told by the company that they cannot retrieve their capital but can expect dividend payments.

Menzgold invites those with gold collectibles to deposit it at their vault with a mouth-watering promise of at least 7.5% returns monthly.

Discussing the matter on Joy News political analysis show Newsfile Saturday, the NPP MP Alexander Afenyo-Markin, reminded the government of the political fall-out between a regulator and a defiant investment firm.

“If a state institution responsible for some of these issues  does not take steps to address the issues…and there is any matter arising thereof, the people of Ghana will blame the government and it is the government that will suffer”.

The Effutu MP referred to a similar circumstance in 2015 after several clients of microfinance companies lost their investments estimated in the millions.

This was after the central bank, Bank of Ghana, withdrew the licence of companies like DKM Microfinance for violating the Banking Act, (Act 2004).

The liquidated company had liabilities of about ¢605 million taken from more than 87,000 depositors across the country. Several angry clients rushed to court to obtain orders to sell off some of the companies’ properties.

Angry customers vented against the Mahama government demanding their monies back. President Mahama blamed BoG for failing to properly supervise financial institutions.

.In the political fallout that followed, the NPP snatched seven seats from the NDC in the Brong Ahafo region. “We as a party benefited in opposition from it,” Afenyo Markin recalled the advantage.

He said Menzgold saga can have implications on the economy if not handled well.

SOURCE-myjoyonline.com