Court clears Securities and Exchange Commission to probe Menzgold

An Accra High Court has given the Securities and Exchange Commission (SEC) the green light to go ahead and scrutinize the operation of Menzgold Ghana Limited as it dismissed a suit filed by the gold dealership company against the Bank of Ghana (BoG) and SEC.

This was after the court, presided over by Mrs Justice Akua Sarpomaa Amoah, upheld the preliminary objection raised by BoG and SEC.

BoG and SEC contended that Menzgold did not exhaust all the regulatory mechanisms for redress before going to court.

SEC/Security agencies to descend on Menzgold

SEC is expected to collaborate with security and law enforcement agencies, as well as the civil service, to scrutinise Menzgold.

The Securities and Exchange Commission, after rightly determining that it has the power to regulate Menzgold, wrote to the company to suspend recruitment of new customers in its gold collectible business.

SEC also asked Menzgold to submit all documents on its operations for scrutiny.

According to the regulator, if after scrutiny the business model proves sustainable, SEC would then license Menzgold.

However, Menzgold wrote to SEC, arguing that the regulator lacks authority to regulate it, and refused to submit documents to SEC.

Menzgold sues BoG and SEC in September 2018

To stop SEC from taking further action, Menzgold, in September 2018, sued BoG/SEC, arguing that the two regulators lack the legal authority to regulate its business.

It then proceeded to court praying for an order directing BoG and SEC to desist from interfering in its activities.

Menzgold further prayed the court to restrain the two institutions from further publishing any alleged derogatory notices concerning its operations.

Suit stopped SEC from investigations

Due to the suit, SEC could not proceed further with its investigations.

Now that the court has settled the matter, SEC can now proceed with further actions.

The suit, filed at the Commercial Division of the Accra High Court, described the two regulators as indulging in activities that were “harmful” to its operations.

Menzgold also wanted the two institutions to retract and apologise for the previous notices they had published.

It claimed that certain notices issued by BoG and SEC in relation to its operations were “arbitrary, capricious and contrary to articles 23 and 296 of the 1992 Constitution”.

Menzgold, therefore, wanted an order setting aside the SEC’s directive of September 7, 2018 for the company to suspend its operations.

It also wanted, among other reliefs, a declaration from the court that its activities did not fall under the scope of the BoG or the SEC’s regulations.

Nana Appiah Mensah jumps EOCO bail

The Economic and Organised Crime Office (EOCO) is said to have arrested Nana Appiah Mensah, chief executive officer (CEO) of the gold dealership firm, and granted him bail, but he has breached the bail terms and absconded.

Meanwhile, an Accra Circuit Court on Wednesday issued a warrant of arrest for Nana Appiah Mensah, popularly called NAM1, and two of his directors.

The two other persons are Madam Rose Tetteh and Benedicta Mensah, who are reported to be his wife and sister, respectively.

Deputy Commissioner of Police Maame Yaa Tiwaa Addo-Danquah, the Director-General of the Criminal Investigation Department (CID), confirmed the warrant of arrest.

The CID boss confirmed that the Menzgold boss had fled the country and was now a fugitive; therefore, her outfit had triggered the process for his arrest by INTERPOL in 194 countries.

She said NAM1 was being investigated for money laundering, and would be possibly charged for defrauding by false pretence, contrary to section 131 of Act 29 (60).

On the face of the warrant, Nana Appiah Mensah is charged with defrauding by false pretence contrary to section 131 of the law.

If found guilty, the accused persons could go to jail for between 10 and 25 years.

Private legal practitioner, Samson Lardy Anyenini, in a Facebook post, noted that sections 132 and 133 shows that it may be extremely difficult to sustain that charge at trial against Nana Appiah Mensah.

This is because, customers signed a contract, did the business and have benefited each month for upwards of five years and reinvested their monies over and over again in the business and this would make it difficult for prosecutors to sustain the charge.

FIC out to freeze assets

Meanwhile, media reports indicate that the Finance Intelligence Centre (FIC) of the Bank of Ghana (BoG) had moved to freeze his assets.

The outcome of FIC’s work would determine whether customers stand a chance of recovering all or part of their principal investments.

Some aggrieved customers of Menzgold have staged several protests, including one in the Ashanti Regional capital, Kumasi, last Tuesday to drum home their appeal, through the Asantehene, to the government to assist them to retrieve their investments.

credit: thefinderonline.com

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 - Gambia: Daily Case Update as of 21st October 2020 October 22, 2020
    Active cases: 881 New cases: 2 New tests: 85 Total confirmed: 3,657 Recovered: 2,658 (+0) Deaths: 118 (+0)Distributed by APO Group on behalf of Ministry of Health, The Gambia.Media filesDownload logo
  • Coronavirus - Kenya: COVID-19 update (22 October 2020) October 22, 2020
    Total confirmed: 47,212 Total recovered: 33,050 Deaths: 870Distributed by APO Group on behalf of Ministry of Health, Kenya.Media filesDownload logo
  • Coronavirus - South Africa: COVID-19 update for South Africa (21st October 2020) October 22, 2020
    COVID-19 Update: A total of 26537 tests were conducted in the last 24 hours, with 2055 new cases. Regrettably, we report 8 more COVID-19 related deaths bringing the total number of deaths to 18741. Click the link to view the full report: https://buff.ly/3ocB2hh.Distributed by APO Group on behalf of National Institute for Communicable Diseases, South […]
  • Coronavirus - Zimbabwe: COVID-19 Update (21 October 2020) October 22, 2020
    COVID-19 update: As at 21 October 2020, Zimbabwe had 8215 confirmed cases, including 7725 recoveries and 236 deaths.Distributed by APO Group on behalf of Ministry of Health and Child Care, Zimbabwe.Media filesDownload logo
  • Stopping Production Decline is “top priority” for Minister Diamantino Azevedo, According to New Report October 22, 2020
    Africa Oil & Power (http://www.AfricaOilandPower.com/), the leading investment promotion platform for the African energy sector, launched a report on Thursday called ‘Angola COVID-19 Response,’ analyzing the country’s strategy to mitigate the impact of the global pandemic on its energy sector, with a particular focus on its oil and gas upstream sector, which constitutes a fundamental […]
  • Coronavirus - Kenya: COVID-19 update (21 October 2020) October 22, 2020
    Download logoCurrently, there are 27 patients in the Intensive Care Unit (ICU), 27 on ventilatory support and 41 on supplementary oxygen. A total of 1,189 are currently admitted in various health facilities and 2,661 are on Home Based Isolation and Care.Distributed by APO Group on behalf of Ministry of Health, Kenya.
  • Coronavirus - Kenya: Distribution of Cases by Counties (21st October 2020) October 22, 2020
    Download logoDistribution of cases by Counties: Nairobi (227), Machakos (64), Mombasa (51), Uasin Gishu (37), Laikipia (28), Busia (19), Kajiado (11), Embu (10), Nakuru (9), Wajir (7), Kiambu (6), Kilifi (6), Kisumu (4), Nyeri (4), Makueni (3), Elgeyo Marakwet (2), Meru (2), Kisii (2), Turkana (2), Narok (1), Homabay (1) & Kakamega (1).Distributed by APO […]
  • Coronavirus - Africa: WHO COVID-19 Africa Update (21 October 2020) October 22, 2020
    Over 1.6 million confirmed COVID-19 cases on the African continent - with more than 1.3 million recoveries & 40,000 deaths cumulatively. View country figures & more with the WHO African Region COVID-19 Dashboard: https://arcg.is/XvuSX.Distributed by APO Group on behalf of WHO Regional Office for Africa.Media filesDownload logo
  • Coronavirus - Guinea: COVID-19 Awareness Campaign in Nzerekore, Guinea October 22, 2020
    A World Health Organization (WHO) team goes door-to-door in Nzerekore, Guinea, to raise awareness about COVID-19 & the important prevention measures. Communities can control the spread of the virus by wearing masks, keeping a distance & frequently practicing hand hygiene.Distributed by APO Group on behalf of WHO Regional Office for Africa.Media filesDownload logo
  • Coronavirus - Africa: New COVID-19 rapid tests a game changer for Africa October 22, 2020
    Download logoThe roll-out of new, World Health Organization (WHO) approved antigen-based rapid diagnostic tests for the novel coronavirus in Africa will significantly boost testing capacity and marks a game changer in the continent’s fight against COVID-19. Many African countries have struggled to test in sufficient numbers to control the pandemic, with only 12 in the […]
About Editor 605 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.