According to the police, the court will decide how to distribute the GHS 2.5 million that was given to Nana Appiah Mensah, also known as Nam 1, by MenzGold, the defunct gold sales company.
This came about after the Police, following the Attorney General's instruction, deposited the funds with the Bank of Ghana.
The Police claim that they have deposited the money with the central bank as a result.
"The aforementioned sum has been deposited in the Bank of Ghana (BoG) Police Exhibit account for the Court's consideration."
The sum is related to inquiries into petitions filed by Nam 1 suspect Nana Appiah Mensah by clients of MenzGold Ghana Company Limited and Brew Marketing Consult Limited, which are currently before the Accra High Court.
In a statement released on October 24th, the police stated, "We would like to state that the court would make the decision on the disbursement of the money."
The Company previously stated that it would start paying out on matured investments starting on Friday, October 20, 2023. In order to start this process, the money needed to be given to the police.
Regarding Menzgold
The Securities and Exchange Commission, working with other state agencies, shut down the Company's operations in September 2018 as a result of suspicions that the company lacked the necessary licenses for either undertaking deposit taking or engaging in gold trading as it claimed to do.
Since many years ago, Menzgold has served as a recipient of gold collectibles that clients have purchased after depositing them at an associated marketing firm.
State involvement
Due to complaints from his clients that their assets are still locked up after the organization was shut down, state prosecutors have been making an effort to bring charges against Nam1 since 2019. The amount of the outstanding cash is estimated to be more than GH1.68 billion in court documents.
The prosecution testified in court that Brew Marketing Consult Ghana Limited was created in December 2016, while Menzgold Ghana Company Limited was initially registered as Menzbank Ghana Company Limited in 2013.
NAM 1, a director and CEO of Menzgold Ghana Company Limited and Brew Marketing Consult Ghana Limited, is the owner of the two sister businesses. In addition, he has the majority of the stock in both businesses.
NAM 1 is charged with operating Menzgold Ghana Company Limited under the pretext of gold trading while operating without the necessary license.
The business model of Menzgold, according to the Attorney-General's Office, involved Brew Marketing Consult Ghana Limited selling gold, gold collectibles, and gold ore to the general public with the intention of investing the proceeds in Menzgold. However, Brew Marketing Consult lacked a license to sell gold.
According to the prosecution statement, Menzgold was given a three-year license by the Minerals Commission to buy and export gold on August 22, 2016.
According to the rules of the license, Brew Marketing Consult Ghana Limited was only allowed to buy gold from small-scale miners for export.
The prosecution claimed that Menzgold Company Ltd. and Brew Marketing Consult Ghana Limited had violated the terms of their restricted gold purchase and exporting license by selling gold to individuals in Ghana.
The public now has a platform to trade in gold and gold collectibles thanks to a gold vault market that NAM 1 and Menzgold Company established in 2016, according to the A-G.
The A-G further claimed that NAM 1 and Menzgold Company established Brew Marketing Consult Ghana Limited to sell gold to the general people in an effort to skirt legal requirements so that Menzgold Company could grab the gold reserves.
"Between 2017 and 2018, NAM 1 and Menzgold invited members of the public to purchase gold and gold collectibles from Brew Marketing Consult Ghana Limited and deposit same with it," it stated.
According to the A-G, the accused person invited members of the public to deposit their gold purchases and gold collectibles in exchange for profits ranging from 7% to 10% by posing as Menzgold Company Ltd. and Brew Marketing Consult as deposit-taking businesses.
The prosecution continued, "In response to this offer, over 16,000 members of the public made substantial deposits in the belief that they were dealing with an authorized deposit-taking organization that would guarantee them the returns as promoted by the accused people.
The A-G said, "Despite numerous engagements and warning notices issued by the relevant agencies, Menzgold and Brew Marketing Consult Ghana Limited continued with their operations."
The prosecution noted in the charge sheet that "meanwhile, members of the public started facing challenges, either with delayed payments or reduced dividends; a number of cheques issued by NAM 1 and Menzgold Company Ltd were also dishonoured."
The Securities and Exchange Commission (SEC) ordered Menzgold to halt operations on September 7, 2018, due to the company operating without an SEC license.
Many clients of the accused individuals, according to the A-G, petitioned the police between November 2016 and March 2019 alleging that they had deposited sizable sums of money with the accused individuals but were unable to realize their investments despite constant efforts.
Investigations showed that the accused stole more than GH1.68 billion from their clients under false pretenses, money they were unable to recoup.
Investigations, according to the Attorney General, also showed that between 2017 and 2018, the accused person transferred enormous amounts of depositors' money from Menzgold Ghana Company Ltd and Brew Marketing Consult Ltd to Zylofon Media, a business connected to NAM 1. The Attorney General also stated that NAM 1 also withdrew enormous amounts of money or had them transferred into his bank account for his personal use.
Investigations have shown that the funds that the accused individuals stole dishonestly from depositors and held onto while Menzgold Ghana Company Ltd's license was suspended.
Several vehicles that belonged to the accused were found throughout the course of the inquiry; they were auctioned off and the money were kept in an exhibit account. Additionally, some gold bars were found on the accused, according to the prosecution.
confirmation and potential payment
In August 2023, Nam 1 reported that there were numerous flaws in more than 60% of the claims that were submitted for validation.
On July 30, Menzgold urged its customers to provide supporting documentation for verification in order to speed up payments.
The business listed a variety of purported flaws, including fictitious (fraudulent) supporting documents, forged signatures from authorized signatories, and abnormalities or inconsistencies of the records on the face of the documents.
However, Menzgold urged clients who are over 60% of the population but "believe they have honest, genuine, and eligible claims to proceed to verify their gold trading transactions status, thus; ascertain as to the validity, invalidity, or otherwise of the purported transactions and hence, an eligibility or ineligibility of any claim whatsoever."
Response of Clients
Fred Folson, the leader of the irate Menzgold clients, is enthusiastic about the most recent development but yet apprehensive.
On October 20, 2023, he informed Hot Edition host Alfred Ocansey that according to their information, GHC 2.5 million cedis, not GHC $5 million, should have been provided. He insisted that everyone had a right to be paid.
"It's great. At least he hasn't made a financial contribution to a third party. not the bedroom rent he was previously paying. We shall be informed of the money's purpose when we are briefed. As far as we are aware, no consumer has been vetted, and none has been disqualified. Every consumer has a right to receive their money. He ought to generate more revenue. Our funds are in his hands. We are keeping an eye on things, he said.
