Beware of another NAM1: Any scheme that pays 10% returns monthly is Ponzi – Expert

An economist and lecturer at the University of Ghana has argued that financial schemes that promise extremely high returns are most likely to be fraudulent.

“To tell you the truth, if there is any scheme that promises an interest of 10 percent a month, I can comfortably say it is a ponzi,” Prof. Assibey said on news analysis show Newsfile on Joy FM Saturday.

His comments come amid a saga that poses a threat to the country’s financial sector. Described as a gold dealership firm, Menzgold Ghana Limited has defaulted in paying its hefty returns to clients.

In September 2018, the Securities and Exchange Commission (SEC) ordered Menzgold to close down its trading with the public as it was not licensed to do so.

Since then Menzgold has failed to pay returns to its 60,000 plus clients. The initial deposits are also locked up despite several promises to pay same.

In the capital, Accra, and the second busiest city, Kumasi; there have been protest matches to force the embattled company to honour its obligation to its customers.

The clients also want the government to come down hard on Menzgold CEO, Nana Appiah Mensah, and his directors.

After more four months protest, the government has budged. Earlier this week a warrant was issued ordering the arrest of Nana Appiah Mensah, otherwise called NAM1.

The authorities say they have informed Interpol to help track him down.

Meanwhile, the government says it won’t use taxpayers’ money to bailout Menzgold clients as both the central bank and the SEC gave countless warnings to the public not to transact business with Menzgold as they were under investigation.

These warnings were woefully ignored.

Gold investments

Speaking on the business model of Menzgold, Prof. Assibey noted that the returns they paid or purported to pay on the supposed gold deposits did not add up.

“If any agency promise stable and consistent return from dealing in gold, I don’t know where the returns will come from because gold prices do not go up consistently…”

“…so there is no way you can be guaranteed consistent returns more so 10%,” he stated. He added that it was “clearly written on the wall that this is ponzi”. “People should have known,” he added.

Greed or Naivety?

The Finance Minister, Ken Ofori Atta early on while speaking on Menzgold noted that there would be no government bailout for greed.

Many analysts have also called out the customers, accusing them of greed, since there were enough red flags.

Speaking on Newsfile, private legal practitioner, Ace Annan Ankomah noted that aside greed some may have been naive.

credit: myjoyonline

Publish on Apt

Do you have any Social, informational, educational or entertaining stuff that should be featured on www.aptnewsghana.com?

Please submit your stories, pictures, and videos to us via WhatsApp: +233548388489 or click on the icon on your screen. Alternatively, email us: aptnewsghana@gmail.com

RSS APO Group – Africa-Newsroom: latest news releases related to Africa

  • Coronavirus - Rwanda: COVID-19 update (15 April 2021) April 16, 2021
    Total cases: 23,744 (+72) Recovered: 21,805 (+211) | 91.8% Active cases: 1,618 In critical condition: 8 Tests: 1,243,409 (+6,289) Test positivity rate: 1.1% Vaccinated: 349,427 (+501) Deaths: 321 (+4) | 1.3%Distributed by APO Group on behalf of Ministry of Health, Republic of Rwanda.Media filesDownload logo
  • African Union holds global conference to accelerate African vaccine development and manufacturing capacity April 16, 2021
    Download logoAfrican leaders assembled at a global meeting to discuss the status of local pharmaceutical manufacturing on the continent, underscored the need to increase local production of vaccines and therapeutics to achieve greater public-health security. “The production of vaccines and access to vaccines is an absolute priority,” Cyril Ramaphosa, President of South Africa, said Monday […]
  • Ultra-fast, and responsive - first details of EOS R3 revealed, Canon's latest professional mirrorless for sports and news April 16, 2021
    Today, with the news of three new innovative RF lens and a new file sharing app, Canon Inc. (www.global.Canon) announces the development of EOS R3 (https://bit.ly/3mTs73P) – its latest high-speed and ultra-responsive professional mirrorless camera. With its ground-breaking design, the camera will empower professional sports and news photographers to meet challenging demands – to outpace […]
  • Coronavirus - Namibia: COVID-19 update (14 April 2021) April 15, 2021
    Newly Confirmed cases: 102 Recoveries: 178 Active cases: 1286 Death: 6Distributed by APO Group on behalf of Ministry of Health and Social Services, Namibia.Media filesDownload logo
  • Coronavirus - Zambia: COVID-19 update (14 April 2021) April 15, 2021
    COVID-19 update - 14th April,2021: we recorded 171 new cases out of 6,640 tests (3% positivity), 97 recoveries; no new deaths were reported.Distributed by APO Group on behalf of Ministry of Health, Zambia.Media filesDownload logo
  • Coronavirus - Eritrea: Announcement from the Ministry of Health (14 April 2021) April 15, 2021
    Ten patients have been diagnosed positive for COVID-19 in tests carried out today at Quarantine Centers in Adibara (5), and Ghirmaika (5), in the Gash Barka Region. On the other hand, forty two patients who have been receiving medical treatment in hospitals in Gash Barka (40), and Southern (2), Regions have recovered fully and have […]
  • Coronavirus - Malawi: COVID-19 update (14 April 2021) April 15, 2021
    New cases: 19 Cumulative confirmed cases: 33,891 Active cases: 948 Total recovered: 31,675 (78 new) Currently admitted in treatment units: 20 (2 new) New discharges from treatment units: 0 Total tests conducted: 225,576 (617 new) Total deaths: 1,134 (1 new) Total vaccinated to date: 240,744 (11,524 new)Distributed by APO Group on behalf of Ministry of […]
  • Coronavirus - Nigeria: COVID-19 update (14 April 2021) April 15, 2021
    89 new cases of COVID-19 in Nigeria; Lagos-19 FCT-15 Adamawa-12 Akwa Ibom-10 Cross River-9 Rivers-6 Ogun-6 Kano-5 Kaduna-4 Osun-3 164,000 confirmed 154,270 discharged 2,061 deathsDistributed by APO Group on behalf of Nigeria Centre for Disease Control (NCDC).Media filesDownload logo
  • Coronavirus - Ethiopia: COVID-19 update (14 April 2021) April 15, 2021
    Daily: Laboratory test: 8,705 Severe cases: 995 New recovered: 863 New deaths: 24 New cases: 1,893 Total: Laboratory test: 2,469,593 Active cases: 56,560 Total recovered: 174,591 Total deaths: 3,252 Total cases: 234,405 Distributed by APO Group on behalf of Ministry of Health, Ethiopia.Media filesDownload logo
  • Coronavirus - South Africa: COVID-19 update (14 April 2021) April 15, 2021
    Tests conducted: 10,216,114 Positive cases identified: 1,561,559 Total recoveries: 1,486,873 Total deaths: 53,498 New cases: 1,599Distributed by APO Group on behalf of Republic of South Africa, Department of Health.Media filesDownload logo
About Editor 614 Articles
Joe Bright Nyarko Journalist/Communication Researcher. Environment & Sustainability Advocate. Managing Editor of aptnewsghana.com, a non-profit news portal with bias towards environment and sustainability issues, rural development policies and gender & inequality.