- It has emerged that Menzgold's business module of buying gold and subsequently advancing interests to investors in Ghana is in clear breach of its licence agreement
- According to the Bank of Ghana (BoG) Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits
It has been revealed that Menzgold Ghana Limited is not licensed to sell gold in the country.
Accra-based Citi FM reports that the gold dealership company was given its license as MenzBanc Ghana Limited and consented to buying the precious mineral from registered small-scale miners and subsequently exporting.
Per the license granted to Menzgold, the company is solely permitted to buy gold in Ghana and export to other countries.
Menzgold has recently come under the spotlight over its operations, following numerous exchanges with the Bank of Ghana.
The central bank accused the gold dealership firm of unlawfully taking deposits, whiles cautioning the public against depositing their funds with the company.
A statement from the Bank of Ghana said Menzgold has no authority to engage in what it says are the “solicitation, receipt of money or investment and the payment of dividends or returns to its clients.”
The central bank maintained that MenzGold is in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
The Bank of Ghana said despite several warnings to the company, Menzgold continues to engage in the illegality of taking deposits.
However, the management of Menzgold rebutted the claims made by the central bank, insisting their operations were perfectly legal.
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In a statement, Menzgold said “it unfortunate and disparaging that the Bank of Ghana with whom we have had a number of engagements over the years and taken them through our business operations would still issue such a statement”.
But documents suggest that Menzgold was licensed primarily to sell the gold outside the country and repatriate majority of the proceeds.
“The Company is hereby authorized to purchase gold locally from any person holding a small scale mining license (“small-scale miner”) at the Company’s registered offices in Ghana to export same in accordance with the terms of this Agreement,” indicated the then Lands and Natural Resources Minister, Nii Osah Mills, who signed the agreement on behalf of the government on 22nd August 2016.
There was also another condition in the agreement that stipulates that Menzgold would repatriate at least 80% of the proceeds from its sale of the gold.
Read more interesting stories on the development in Ghana's banking sector here.
YEN earlier reported that Menzgold CEO, Nana Appiah Mensah, has finally revealed the "cult" that he belongs to. His revelation follows claims that he is a member of Illuminati. Nana Appiah opened up on the claims in a Twitter post on Sunday.
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