CEO of Menzgold, Nana Appiah Mensah, NAM1 has refuted claims that the activities of the company is a ponzi scheme.
Addressing the press on August 19 in reactions to the numerous concerns that have been raised against his company, NAM1 said the company is not a ponzi scheme but just an innovative drive.
Explaining further why he thinks their operation is not a ponzi scheme, NAM1 said, "Menzgold is not a ponzi scheme, now the gold collectible trade is a platform that we created and I mention innovation when I was speaking so we own the proprietory to a gold trading platform it a platform that has a lot of buyers, and a lot of sellers with their gold collectibles we only own the platform so it just like Accra Mall for example who have a product you want to sell you don't know where to find a buyer and so you go to the Mall and apply for a space just so you can bring your product and sell, a customer owns his gold collectible comes to Menzgold and say i want to trade my gold collectible on your platform because the platform is ours so we need to get paid and this is why they pay us commissions, so the pay for commission we accept and give them receipt narrating the transaction history on the receipt then we accept the gold and sign a contract, it's the contract that regulates our relationship and in the contract which states what to be done in case of breach after we put the gold on our platform, it then meet a buying lead somebody buys it we make profit of having accepting the commission and we also make a profit on the customers gold that they have placed on the platform, becuase the contract says we should pay them returns at the end of the month....."
About GH¢200 million of depositors cash is believed to be held up at the gold dealership firm.
Menzgold folded up last year after the Securities and Exchange Commission (SEC) ordered it to suspend its operation with the public. Several efforts by the customers targeted at the company to get their monies have failed to yield any positive results.
According to the Commission, Menzgold did not have the license to trade in gold collectibles and that doing so was in contravention of the Securities Industry Act, 2016 (Act 929)
NAM1 says he has tried all means to get cash and pay the aggrieved customers and one of such plans led him to UAE where he was arrested.
After several months, the court in the UAE ruled that Horizon Diamonds should pay NAM1 some $39 million for gold supplied.
NAM1 after the ruling returned to Ghana where he is facing charges for defrauding and has been granted bail worth GH¢1billion.
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