Sanction Menzgold if Found Culpable – Nana Otuo

The Bank of Ghana must invoke its power to sanction Menzgold if it views its activities as flouting provisions of the Banks and Specialized Deposit-Taking Institutions Act (Act 930).

According to Banking Consultant, Nana Otuo Acheampong, failure to punish the company over possible grounds of breaching the law may result in a repetition of the act.

The comment comes on the back of a latest directive from the Bank of Ghana cautioning the public against deposit taking activity with Menzgold.

“At the moment, the situation appears confusing because the BoG notices especially the latest one clearly states that it appears that the institution is taking deposits notwithstanding the earlier warnings that you’ve given them. So if it appears that they are still taking deposits, then what more,” Nana Otuo said.

The latest directive which came on November 28, 2017, marks the third time this year that the public is being cautioned against the deposit taking business by Menzgold as it is not licensed to do so.

But the company has on each occasion, dismissed any such claims.

Nana Otuo Acheampong however tells Citi Business News the central bank must work to protect the public against any unforeseen harm.

“Unless that phrase ‘appears’ is that in reality, they are not taking deposits, but it is only apparent. If it is only apparent, then probably they do not have evidence in law. But if it is real then they are taking deposits, then they are breaking Act 930 and they have to be sanctioned and the regulator is the one who has got to tell us exactly what to expect now.”

Meanwhile, the Banking Consultant has suggested that private persons may pursue legal action against the Bank of Ghana.

This he believes could be triggered via Parliament as it has oversight responsibility over the implementation of the Banks and Specialized Deposit Taking Institutions Act.

“If any citizen feels that BoG is not on their duty as requested, I’ll say they are answerable to Parliament…As a result, these persons can petition their MPs for them to further invite the central bank for questioning,”