May 30, 2024

Nana Appiah Mensah, commonly known as NAM 1, the CEO of the now-defunct gold-deposit company Menzgold, has announced the successful completion of its first bulk payment totalling GHC5,000,000. This significant milestone follows a comprehensive transaction verification process conducted between August 10, 2023, and September 14, 2023. It highlights Menzgold’s dedication to addressing its financial obligations to its valued clients.

Furthermore, the company has pledged to provide full refunds to the 82 clients who had previously purchased Menzgold’s verification Digital Access cards. These cards are now available for free, and the refunds for these clients will be completed by October 21, 2023.

Out of the GHC5,000,000 allocated for the first payment batch, GHC2,500,000 has been allocated to settle a compromised judgment debt related to specific individuals involved in a legal case (Suit No. CM/RPC/0835/2019) adjudicated in the High Court of Ghana, Commercial Division, Accra. The remaining GHC2,500,000 will be distributed among over one hundred other individuals.

This payment distribution means that clients will receive varying amounts, ranging from GHC4,000 to GHC2,500,000.

Nana Appiah Mensah, Menzgold’s CEO, expressed his gratitude to the company’s cherished clients, well-wishers, and the general public. He also thanked God for achieving this significant milestone.

Nana Appiah Mensah reiterated the company’s commitment to addressing its financial obligations and encouraged clients and stakeholders to continue offering their prayers, cooperation, support, and constructive criticisms. Menzgold aims to achieve a zero percent (0%) debt-liability by the end of the next calendar year.

He concluded the statement by thanking everyone for their cooperation and understanding throughout this process.

MENZOLD:

Menzgold’s operations were halted in September 2018 by the Securities and Exchange Commission, in collaboration with other state agencies. Concerns were raised that the company lacked the appropriate license for deposit-taking or dealing in gold, as it had claimed.

STATE AT PLAY:

State Prosecutors have attempted to prosecute NAM1 since 2019 following allegations by his customers that their investments remain locked up since the company was shut down. Documents filed in court estimate the outstanding cash to be in excess of GH¢1.68 billion.

The prosecutors informed the court that Menzgold Ghana Company Limited was first registered as Menzbank Ghana Company Limited in 2013, while Brew Marketing Consult Ghana Limited was registered in December 2016. Both companies are sister companies owned by NAM 1, who is also the majority shareholder.

NAM 1 is accused of operating Menzgold Ghana Company Limited as a deposit-taking business under the guise of gold trading, without the requisite license.

According to the Attorney-General’s Office, Menzgold’s business module involved Brew Marketing Consult Ghana Limited selling gold, gold collectibles, and gold ore to the public for investment in Menzgold, despite Brew Marketing Consult not having a license to sell gold.

On August 22, 2016, the Minerals Commission granted Menzgold a three-year license to purchase and export gold, with the stipulation that Brew Marketing Consult Ghana Limited could only purchase gold from small-scale miners for export. The prosecution alleges that Menzgold and Brew Marketing Consult Ghana Limited breached this restricted license by selling gold to individuals in Ghana.

The Attorney-General further notes that between 2017 and 2018, NAM 1 and Menzgold invited the public to purchase gold and gold collectibles from Brew Marketing Consult Ghana Limited and deposit them, promising profits ranging from seven percent to ten percent.

However, it was revealed that NAM 1 and Menzgold Company, in an attempt to circumvent the law, set up Brew Marketing Consult Ghana Limited to sell gold to the public, allowing Menzgold to accept gold deposits. This led to the public depositing substantial sums of money in the expectation of high returns.

In response to various engagements and warnings from relevant agencies, Menzgold and Brew Marketing Consult Ghana Limited continued their operations. Despite these warnings, customers began experiencing delays in payments or reduced dividends, and many checks issued by NAM 1 and Menzgold Company Ltd were dishonoured.

On September 7, 2018, the Securities and Exchange Commission (SEC) directed Menzgold to suspend its business operations for operating without an SEC license.

Between November 2016 and March 2019, many customers of NAM1 complained to the police that they had invested substantial amounts with him but were unable to recover their investments. Investigations revealed that the accused persons had taken more than GH¢1.68 billion from their customers, which they had not been able to recover.

The Attorney-General’s Office also noted that between 2017 and 2018, NAM 1 transferred large sums of depositors’ funds from Menzgold Ghana Company Ltd and Brew Marketing Consult Ltd to Zylofon Media, a company related to NAM 1. Substantial amounts of money were withdrawn by NAM 1 or transferred into his bank account for personal use.

As part of the investigations, several vehicles were recovered from NAM 1, auctioned, and the proceeds placed in an exhibit account. Gold bars were also recovered from the accused persons.

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