Menzgold boss defies Bank of Ghana public notice

• Posted on August 7, 2018
• by Ellsamwise King
• Comment

The owner of gold buying firm Menzgold Ghana Limited, Nana Appiah Mensah has described a public notice by the Bank of Ghana which stated that his company is breaching section 6 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) as a joke and diversionary tactic.

The Bank of Ghana in a notice signed by Mrs Caroline Otoo, Secretary to Governor Dr Ernest Addison, reiterated that Menzgold Ghana Limited is not licensed and has no authority to engage in the solicitation, receipt of money or investments and the payment of dividends or returns to its clients which is captured in the Act.

The BoG added that after several cautions to Menzgold, it has in discussions with relevant regulatory authorities to sanction them for breaching the law.

The Central Bank also warned the public that it will not be liable in the event of loss of investments of deposits as anyone who transacts “any of the above-mentioned businesses with Menzgold Ghana Company Limited does so at his or her own risk”.

However, Mr Mensah in a post on Twitter accused the BoG of attempting to divert attention from the recent collapse of five banks that it duly licensed and supervised by targeting Menzgold.

He posted : TODAY’S JOKE: Bank of Ghana, so now you dey do propaganda???? I beg paa “Tell Ghanaians exactly what happened with the 5 or so collapsed banks you duly LICENSED & SUPERVISED for years. Please don’t attempt to use our dear Menzgold to cover up?. I beg make we think!

https://twitter.com/mn_appiah/status/1026772540637806593

What the Deposit-Taking Institutions Act, 2016 (Act 930) says

Deposit-taking business

(1) Subject to this Act, a person shall not carry on a deposit-taking business in or from within the country unless that person is a body corporate formed under the laws of this country.

(2) A person that is not a body corporate formed under the laws of the country may, with the prior written approval of the Bank of Ghana, carry out a deposit-taking business in or from within the country.

(3) A person shall not propose to be a shareholder of a deposit-taking microfinance institution unless that person is a citizen

(4) The Bank of Ghana shall issue directives to govern the operations of persons exempted under subsection (2).

(5) For the purpose of this Act, deposit-taking business means the business of a) taking money on deposit and making loans or other advances of money; and (b) financial activities prescribed by the Bank of Ghana for purposes of this definition.