General News of Monday, 5 November 2018
The Chief Executive Officer of Menzgold Ghana Limited, Nana Appiah Mensah, popularly known as NAM 1, has assured customers of the embattled company that Menzgold will not collapse.
According to him, the company is bouncing back stronger as they are working assiduously to address all the challenges they’re faced with.
In an interview on his Zylofon FM on Monday, Mr. Appiah Mensah said they are engaging with the various stakeholders to amicably resolve the outstanding issues affecting the company’s operation.
He, however, did not state emphatically when the thousands of their stranded customers will get the value on their gold or be given their entire investments.
“I believe that with every issue, dialogue can resolve it. We are all Ghanaians, and we are working for Ghanaians in good faith. We have hopes that this issue will end peacefully and all stakeholders will help us,” he said.
He indicated that, although the processes for the resolution of the company’s challenges may take a longer period, he is certain that the company’s operation will return to normalcy soon.
“I believe the authorities are listening, they are for Ghanaians. It may be long, but I believe all these will be resolved soon. We’ll follow the due processes… Menzgold will have a great rebound and will be more exciting than the previous 5 years,” NAM 1 assured.
Current challenges have slowed our big vision
Nana Appiah Mensah indicated that, the unforeseen challenge to the gold business has greatly affected the company’s vision to be a major player in the gold trading business on the international market.
He revealed that the company planned to supply about 2 tons of gold with some partners in Switzerland and eventually connect with the Swiss Bank before moving to join the London Bullion Market Association, and then list on the Toronto Stock Exchange.
According to him, the vision would have made the company more profitable and enabled it to bring in more money to be invested in various companies and ventures that will reduce unemployment in Ghana.
“We had a vision, that but for what had happened, by the end of 2018 we should have supplied about 2 tons of gold to strategic contacts in Switzerland, and get a deal with the Swiss Bank, and then get to the London Bullion Market Association, and then list the company on the Toronto Stock Exchange to make it bigger and more profitable to establish more businesses in Ghana so that many unemployed persons can be employed, but in all things we thank God,” he said.
Correct us to make us strong
While admitting that Menzgold’s business may not be perfect, Nana Appiah Mensah appealed to the Bank of Ghana and the Securities and Exchange Commission to gently “correct” the company to enable it to become more competitive especially on the international market.
He also pledged to comply fully with the BoG and SEC.
“I can’t say Bank of Ghana or the Securities and Exchanges Commission has done us evil. We are a young company, we expect them to correct us when we go wrong so that we can be strong and do better on the international stage. All hope is not lost. We will continue to solve the problem. We will not do what they ask us not to do. We will ensure we comply with everything they ask us to do.”
Menzgold was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.
This, the SEC said this was in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
Despite initial protests, Menzgold complied with the directive. It has however failed to fully pay its numerous aggrieved customers the value on their gold deposits as well as their entire investments.
As a result of this, the suspicion that the company was operating a scam has heightened.