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

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

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

  • Coronavirus - South Africa: COVID-19 Update (20th September 2020) September 20, 2020
    Download logoAs of today, the total number of confirmed #COVID19 cases is 661 211, the total number of deaths is 15 953 and the total number of recoveries is 590 071.  Distributed by APO Group on behalf of Republic of South Africa, Department of Health.
  • Coronavirus - Kenya: COVID-19 Updates Summary (20 September 2020) September 20, 2020
    New cases: 152 Confirmed cases: 36,981 New recoveries: 110 Total recoveries: 23,887 New deaths: 2 Total deaths: 648Distributed by APO Group on behalf of Ministry of Health, Kenya.Media filesDownload logo
  • Coronavirus - Zimbabwe: COVID-19 Update (20 September 2020) September 20, 2020
    As at 20 September 2020, Zimbabwe had 7 683 confirmed cases, including 5 924 recoveries and 225 deaths.Distributed by APO Group on behalf of Ministry of Health and Child Care, Zimbabwe.Media filesDownload logo
  • Coronavirus - Eswatini: COVID-19 Update ( 20th September 2020) September 20, 2020
    Download logoMinister of Health Lizzie Nkosi's COVID19 update on 20 September 2020: New cases: 24 Total cases: 5269 New recoveries: 53 Total recoveries: 4624  Distributed by APO Group on behalf of Government of Eswatini.
  • Coronavirus - Nigeria: The COVID-19 Nigeria situation report for 19th September, 2020 September 20, 2020
    The COVID-19 Nigeria situation report for 19th September, 2020 has been published. Our daily COVID19 situation reports provide a summary of the epidemiological situation & response activities in Nigeria. Download via: by APO Group on behalf of Nigeria Centre for Disease Control (NCDC).Media filesDownload logo
  • Coronavirus - Kenya: COVID-19 Update (20/09/2020) September 20, 2020
    Today we confirm 152 people have tested positive of coronavirus from a sample size of 2224 bringing our total tally of confirmed cases to 36981.Distributed by APO Group on behalf of Ministry of Health, Kenya.Media filesDownload logo
  • Coronavirus - Uganda: The break down of cases in Uganda (19 September 2020) September 20, 2020
    Download logoThe breakdown of the 270 new cases are: Contacts and alerts (240): Kampala (59), Gulu (56), Oyam (22), Mbale (17), Wakiso (15), Moroto (10), Amudat (8), Bududa (4), Busia (4), Hoima (5), Kitgum (5), Sironko (5), Budaka (2), Iganga (2), Lamwo (3), Luwero (2), Mbarara (2)Distributed by APO Group on behalf of Ministry of […]
  • Coronavirus - Uganda: Daily Case Update as of 20th September 2020 September 20, 2020
    Results from COVID-19 tests done on 19 September 2020 270 new COVID-19 cases confirmed. The cumulative total confirmed cases of Ugandans are now 6,287.Distributed by APO Group on behalf of Ministry of Health - Republic of Uganda.Media filesDownload logo
  • U.S. Ambassador Visits Esna and Luxor to Highlight U.S.-Egypt Partnership September 20, 2020
    Download logoU.S. Ambassador Jonathan R. Cohen visited Luxor and Esna on Saturday, September 19 to reaffirm the strong U.S.-Egypt partnership in wastewater management, agribusiness strengthening, and cultural heritage preservation with Minister of International Cooperation Dr. Rania Al-Mashat, and Secretary General of Luxor Governorate General Emad Abou El Azayem.     In Luxor, Ambassador Cohen joined Minister Al Mashat, Secretary General of Luxor […]
  • Coronavirus - UNICEF Benin COVID-19 Situation Report No. 21: 4-18 September 2020 September 20, 2020
    Situation overview Since March 2020, a total of 2,280 COVID-19 confirmed cases were identified in Benin out of 132,787 tests conducted. The situation seems to stabilize, with 38 new cases identified in the last two weeks. Download report: No death related to COVID-19 were recorded in the reporting period. Fatality rate remains at 1.8% whilst […]
About Editor 600 Articles
Joe Bright Nyarko Journalist/Communication Researcher. Environment & Sustainability Advocate. Managing Editor of, a non-profit news portal with bias towards environment and sustainability issues, rural development policies and gender & inequality.