Occupy Ghana demands probe into Menzgold saga

Pressure group, Occupy Ghana is demanding thorough investigations into the operations of Menzgold to protect consumers from any undesirable impact on the unsuspecting public.

Occupy Ghana is among others concerned that the inability of the Bank of Ghana, the Securities and Exchange Commission (SEC) and the Minerals Commission (MinComm) to clarify the operations of Menzgold will leave much to be desired in the face of possible breach of Ghana’s laws.

The Second Deputy Governor of the Bank of Ghana, Dr. Johnson Asiamah at the Public Account Committee (PAC) sitting cautioned the public against making cash deposits with Menzgold as it is not licensed to accept deposits.

The company in question has since denied any of such claims of accepting cash deposits.

A member of Occupy Ghana, Ace Annan Ankomah tells Citi Business News the three institutions must give clarity to the public.

“I don’t think that Ghana has recovered from the DKM matter yet so in an instance where a business is being undertaken and paid down dividends at a rate that is quite unbelievable. What is worse is that the Bank of Ghana issues a statement and tells Parliament that they are not licensed to accept deposits and yet admit that they have not done a sole legal enquiry, then I think that Ghanaians must begin to ask questions of the Bank of Ghana, the SEC and the minerals commission who are the people who are supposed to regulate cases like this,” he remarked.

Mr. Ankomah added, “We cannot teach them how best to do their jobs but as Ghanaians we are entitled to say that we are unhappy about the fact that they have not investigated this matter and are issuing warning to the public. They need to investigate it; they have the statutory power to investigate it to determine whether what is going on at Menzgold is in accordance with the law… But to give a warning before investigating, we thought there’s much to be desired.”

Probe into rates offered clients

The Pressure Group in a statement on the matter also required further probe into the proposed dividends.

Citing documents from some allied agencies, Occupy Ghana stressed that a probe will settle outstanding concerns.

“The Precious Minerals Marketing Company (PMMC)’s 2016 – Third Party Gold Export records show that in 2016, the PMMC exported gold on behalf of an entity called “MenzBanc,” for 6 out of the 12 months.

“The total weight of gold so exported was 3,217.834 ounces, with MenzBanc earning US$3,943,022.41 (GH¢15,742,662.18). These exports were to Dubai, South Korea and Hong Kong, according to the records, and placed MenzBanc among one of the smallest exporters of gold through the PMMC.”

“When one contrasts the above facts with the fantastic interest rates (“dividends”) that MenzGold promises and pays to its customers or clients, it is critical for Ghanaians to know whether MenzGold is really only dealing in gold, and if so whether the current business model complies with the terms and conditions of its gold dealing license, if any,” it added.