Govt reminded of political backlash over Menzgold brouhaha

Mr Afenyo-Markin

Mr Afenyo-Markin

The Member of Parliament (MP) for Effutu, Alexander Afenyo-Markin, has reminded the government of suffering political backlash if people lose their monies in an investment firm believed to be operating illegally.
“If a state institution responsible for some of the issues does not take steps to address them and there is any matter arising thereof, Ghanaians will blame the government and it is the government that will suffer,” he cautioned.

He referred to a similar circumstance in 2015 after several clients of microfinance companies lost their investments estimated in millions.

This was after the Bank of Ghana withdrew the licence of companies such as DKM microfinance for violating the Banking Act, (Act 2004).
Mr Afenyo-Markin reminded the government of the political fall-out between a regulator and a defiant investment firm.
The firm, Menzgold Dealership, was directed to shut its gold operations after a regulator, the Securities and Exchange Commission (SEC) said it was operating without a licence and escalated its fight with the regulator to the law courts after weeks of media banter.

Anxious customers have been told by the company they cannot retrieve their capital but can expect dividend payments.

Menzgold invited those with gold collectibles to deposit it at their vault with a mouth-watering promise of at least 7.5 per cent returns monthly, within a year, a client makes 90 per cent returns on investments and at most 120 per cent, a promise SEC thinks is risky.
The Akufo-Addo-led administration is still facing pressure from aggrieved customers to pay back their funds as he promised ahead of the December 2016 general election.

He said the Menzgold saga can have implications on the economy if not handled well due to the company’s operations for the past five years. –

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