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 beenprotestmatches 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.
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.
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.
Please share our apt news stories, every link counts! Thanks...
Download logoThe World Health Organization (WHO) today launched a new alliance, the Africa Infodemic Response Alliance (AIRA), to coordinate actions and pool resources in combating misinformation around COVID-19 pandemic and other health emergencies in Africa. Digital platforms have been inundated with COVID-19-related information since the pandemic began in late 2019. Information about the virus has […]
Download logoInvesting in African Mining Indaba (Mining Indaba) (www.MiningIndaba.com), part of Hyve Group Plc is delighted to announce the first line-up of keynote speakers for Mining Indaba Virtual, which will be held on 2-3 February 2021. Mining Indaba is renowned for offering a high calibre of speakers, and 2021 is no exception. The organisers are […]
Download logoAlthough advantageous, local currency financing for off-grid renewables projects and businesses in Africa is still limited, according to a new report released by the African Development Bank (https://www.AfDB.org/). The report, Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa, summarized findings of an in-depth study […]
Blue Prism (AIM: PRSM) (https://www.BluePrism.com/) today announced the availability of Blue Prism intelligent automation software in AWS Marketplace, giving Amazon Web Services (AWS) and Blue Prism customers another avenue for automation in the cloud. The listing includes Blue Prism on an Amazon Machine Image (AMI) instance with a set number of digital workers, plus connectors […]
[youtube https://www.youtube.com/watch?v=6uh6ksrinXc?info=Ome4Noq+X0FMCsJ8xIe3mRsoQmDmfCH6YVHlEAq2XjeSdedO5rCCcYKWa70L/iPkuoMFhQ4RotPKs7G3ezZB5Goz21MZ9hBj1w/PsJpCYCgOwPkl4JiAl8CcVqR9Za8vSigt3zlivpOjLl/urRssnIdpn9ylMrpK3kFlHaQ7UxQ=&w=854&h=480]Distributed by APO Group on behalf of WHO Regional Office for Africa.Media filesDownload logo
Download logo961 people have tested positive for the virus, from a sample size of 7,780 tested in the last 24 hours, bringing to 85,130 the number of confirmed positive cases in the country. The cumulative tests are now 901,426. From the cases 944 are Kenyans while 17 are foreigners.Distributed by APO Group on behalf of […]
Download logoSouthBridge Group (www.SouthBGroup.com), the official financial advisor of the Togolese government, today announced two transactions with Olam International Limited and its subsidiary Arise Special Economic Zone. SouthBridge Group, an innovative, pan-African financial advisory and investment firm, working with corporates, sovereigns and multinationals across the Continent, concluded two significant transactions in the Republic of Togo, […]
Team Qhubeka ASSOS is thrilled to announce that Fabio Aru, the 2015 Vuelta a Espana champion, will be riding for Africa’s only UCI-registered WorldTour team in 2021. Aru, 30, has a stellar palmares having finished second and third at the Giro d’Italia, in 2015 and 2014 respectively, and fifth at the Tour de France in […]
Mr. Ayman Amin Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-idb.org), the private sector arm of the Islamic Development Bank (IsDB), and Mr. Farkhod Islomovich Salamov, Chairman of the Management Board of Xalq Bank, signed an Advisory Services Agreement in relation to launching of an Islamic Window […]
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.