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Menzgold Saga: We won’t use taxpayers’ money to pay customers - Gov’t

By Mutala Yakubu
Menzgold Saga: We won’t use taxpayers’ money to pay customers - Gov’t

The government has stated categorically that it will not use taxpayers money to pay customers of embattled gold dealership firm Menzgold.

The customers have called on the government to pay their lock up cash even though the Finance Minister earlier stated earlier that the government will not pay customers.

This declaration was from the fact that the Bank of Ghana did not regulate the activities of Menzgold, unlike the DKM issue.

In a statement released on Thursday January 10, 2019 by the Information Ministry it said “While government sympathizes customers on the difficulties encountered with their transaction with the company, the state cannot and will not resort to the use of taxpayer’s monies to refund customers monies,”

“In the case of banks and specialized deposit-taking institutions, as well as asset management companies licensed and regulated by BOG and SEC, owing to the fact that these companies were regulated by BoG and SEC, the regulators are clothed with the legal mandate to intervene in their matters, in accordance with law. DKM, for example, was licensed by the BoG, the reason for which it stepped in to help retrieve the monies of depositors. In the case of Menzgold, it operated as a trading company and falls outside the scope of the regulators' intervention,” the statement said.

In the statement that touched on a variety of issue ranging from President Nana Akufo-Addo’s purported endorsement of Menzgold CEO, Nana Appiah Mensah, to the work of security agencies, the government reminded that citizens were warned of Menzgold’s shaky foundation.

“This warning was made as far back as April 2016, and, unfortunately, was disregarded by many customers of Menzgold. BoG and SEC are, therefore, not clothed with any legal mandate to refund monies clients.”

“Customers whose contractual obligations have not been met by the company are entitled to seek a legal remedy to retrieved their funds paid to the company ostensibly to buy gold,” the statement added.

In the meantime, the statement assured that security agencies “shall employ all the powers of the state to find the accused persons investigate the allegations and ensure that the law takes its course in this matter.”

A warrant has been issued for the arrest of Nana Appiah Mensah who is currently out of the country.

Spokesperson for Menzgold Nii Armah Amarteifio says CEO of the firm Nana Appiah Mensah has left the shores of Ghana to work and get money to pay aggrieved customers.

Read also: NAM 1 hasn't abandoned us, he is working overseas to get money to pay customers-Menzgold Spokesperson

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