President Akufo-Addo for the first time spoke on the MenzGold saga when delivering the State of the Nation Address (SONA 2019) in Parliament.
The President advised Ghanaians to learn lessons from the issue as the State tries to unravel the mystery surrounding the saga.
"The MenzGold debacle is a tragic phenomenon that appears to have occurred in plain sight, and affected a lot of people, in spite of warnings from official institutions"
"As the authorities try to unravel the intricacies of the MenzGold saga I admonish Ghanaians to learn the necessary lessons, even as State institutions work to bring a resolution and those who indulged in criminal activities, are brought to justice".
"The existence of a body such as the newly-inaugurated Presidential Financial Stability Advisory Council would have forestalled the emergence of the MenzGold saga, and will make it difficult, in future, for any such scheme to get off the ground"
Background
Menzgold which began as Menzbank started operations some five years ago.
“Our bullion investment ( gold trading) platform that offers ten percent (10%) monthly return on investment (ROI) has produced an unblemished 100% records since its inception last year; being exceedingly successful, offering individuals a sure alternative source of income amidst this current global economic ills. Customers leave our premises always satisfied and very delighted with the excellent customer services offered and the ten percent (10%) dividend they receive,†the company said on its website.
However, in 2014 the Bank of Ghana first warned the company to stop taking deposits. It refused and had as many clients still investing in the business with the promise of receiving 10% interest monthly, far higher than the interest the commercial Banks give to customers.
When the NPP assumed office, the Bank of Ghana, as well as the Security and Exchange Commission, escalated its supervisory activities over Menzgold describing its activities as illegal.
But the gold dealership firm insisted it was on the right path and challenged both the Bank of Ghana and SEC of trying to collapse its business.
It appointed lawyers, including Kwame Akuffo, and other PR professionals all of whom took on the government as well as BoG and SEC.
Both institutions stood its grounds warning customers not to put their monies into what was clearly an illegal business venture.
Some of the customers turned their anger against the government, the BoG and SEC accusing them of being jealous of the wealth being created by Menzgold.
In September 2018, SEC wrote to Menzgold warning it to shutdown its operations that had to do with deposit-taking, a decision that broke the camel’s back.
Menzgold has since been struggling to pay the principal amounts of its investors.
Several promises to pay have been broken, deadlines exceeded with no hope at all about when the investors will receive their principal amounts.
In what is deemed to be an attempt to file for bankruptcy, the company asked its workers to go home claiming there is an attempt on their lives by the angry workers.
The demonstrations by the customers are yet to cease as angry customers in Accra and Kumasi have threatened to take over properties of the company.
Read also: If you are living in a MenzGold property you better go and rent-EOCO advises
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