‘We want to fight armed robbery’ – Police fed up with Menzgold demonstrations
The Ghana Police Service has indicated it is unable to provide security for another demonstration by frustrated clients of Menzgold who have been demanding their locked-up funds.
In a letter to the leader of the coalition of aggrieved customers of Menzgold, Timothy Binob, the police said was focused on fighting armed robbery as “we enter the threshold of the year”.
Accra regional police commander, Deputy Police Commissioner Fredrick Adu Anim, in the letter dated February 10, 2020, said the police “cannot accept any demonstration, picketing or walk.”
Is this latest move by the police Déjà Vu?
The police in 2015 complained it could not provide security for demonstrators agitating for a new voters’ register.
The pressure group, Let My Vote Count Alliance, proceeded to the court and obtained a favourable judgment to proceed with the demonstration.
Menzgold frustrations grow
The group was preparing to petition the president 14 months after they last petitioned him in December 2018.
They say several promises by Nana Appiah Mensah to pay back the monies have not been honoured. A claim by Menzgold that payment had been made to some 200 clients was greeted with doubt.
Menzgold says it has released list of 200 paid clients to CID
Menzgold customers, some of whom invested life-savings and contracted loans to invest in the company, have been demonstrating since the company was shut down in September 2018.
The Securities and Exchange Commission said that the Nana Appiah Mensah-owned firm did not have the license to trade in gold collectibles from the public.
NAM 1 prays for souls of persons who have died over non-payment of Menzgold deposits
Since then demonstrations have been almost monthly, taking some brief breaks to resume with no less a fervor.
Menzgold demonstrations, pickets, and sieges
Menzgold customers have protested at least 8 times in 14 months, one of the longest-running series of protests in the 4th republic. They include the:
- October 12, 2018, demonstration in Kumasi in the Ashanti region.
- November 27, 2018, demonstration in Kumasi in the Ashanti region.
- December 20, 2018, siege at Menzgold offices in the company’s Dzorwulu office in Accra in the Greater Accra region.
- January 8, 2019, demonstration in Kumasi in the Ashanti region.
- February 19, 2019 demonstration in Tarkwa in the Western region.
- April 2, 2019, picket SEC, EOCO in Accra in the Greater Accra region.
- June 27, 2019 demonstration in Accra in the Greater Accra region.
The last demonstration was in January 2020 when customers, bussed from other regions, besieged the premises of the company’s CEO Nana Appiah Mensah.
One heavily gesticulating angry woman screamed during the picket, “Is NAM1’s blood made of gold and ours made of sand? Why are they protecting this fraudster?”
‘NAM1’s blood not made of gold’ – Furious woman accuses gov’t of pussy-footing over Menzgold crisis
That “unlawful assembly” was quelled by the police who also made several arrests.
The traumatized customers have vowed to give every ounce of their blood to get their monies back from an investment scheme that has been branded a Ponzi.
A former Chief Executive of the Minerals Commission, Dr. Tony Aubynn, warned in September 2018, “I tell you if caution is not taken, we are going to have a national funeral.” He revealed the deep level of patronage the company enjoys.
“Maybe the biggest funeral will happen in my hometown Tarkwa,” Tony Aubynn said and explained virtually all retrenched workers in mining companies in the area had investments at Menzgold.
NAM1 is standing trial for money laundering and defrauding by false pretence and has been granted GH¢1billion bail by a Circuit Court in Accra.
How Menzgold operated
Menzgold has a wide range of clients who found the promised of 7% to 10% interest on their gold collectibles deposited with the company attractive despite regular warnings from regulators not to do business with the company.
The customers are said to include bankers, small-scale miners, top military and police officers, clergymen and women, and Ghanaians living abroad.
Timeline of how Menzgold saga unraveled
Oct 28, 2014: Bank of Ghana discovered, in a special exercise within the Central Region, that Menzbank was operating a micro-finance in Kasoa under the guise of gold trading and illegally using the name “Bank”.
April 13, 2016: BOG issued a notice to warn the general public against the deposit-taking operations of Menzbanc.
July 22, 2016: BOG wrote to Menzbanc cautioning it against its unlicensed deposit-taking activity.
Aug 2, 2016: BOG invited the management of Menzbanc to a meeting on its unlicensed deposit-taking activity.
Aug 3, 2016: The company responded in writing and claimed that it was not engaging in deposit-taking activities.
Aug 16, 2016: The BoG contacted Minerals Commission and Precious Minerals Marketing Company (PMMC) on the license status of Menzbanc. The Minerals Commission confirmed the company had a license only to ‘purchase gold locally… and to export same”. However, its licence with PMMC had expired.
Feb 13, 2017: BoG held another meeting on with representatives of the company.
Sept 19, 2017: The Minerals Commission wrote a letter to Menzgold titled “Unauthorised Business Activities,” pointing out to Menzgold hat it was in breach of the law and the Licence and that Brew Marketing had not been registered as a licensed buying agent.
Jun 2018: BoG conducted a joint visit with Minerals Commission to licensed gold traders and refineries in Accra to understand the nature of their operations. The team established that all the companies were engaged in smelting and exporting of gold with the exception of Menzgold that is engaged in the solicitation of deposits from the general public with interest rates between 7% -10% per month to customers based on the quantity of gold purchased.
Aug 6, 2018: BoG issued another warning to the general public over Menzgold, but its CEO responded on twitter jabbing the regulator to focus on failed banks.
Aug 14, 2018: Nana Appiah Mensah apologised to Bank of Ghana and said Menzgold was cooperating with the regulator to find an amicable solution.
Sept 7, 2018: SEC ordered Menzgold Ghana Limited to stop trading in gold collectibles, letting off panic and anxiety among clients.
Sep 13, 2018: Menzgold requested to sit down with SEC, but SEC set bring-some-documents conditions for the meeting, which Menzgold rejected.
Sept 14, 2018: A group calling itself the Coalition Of Concerned Youth of Ghana (COCYOGH) hit the streets of Kasoa in the Central Region to demonstrate against what they described as the harassment of Menzgold.
Sep 19, 2018: Menzgold customers issued threats as their investments were locked up
Sept 27, 2018: Menzgold sued BoG, SEC accusing the regulators of abuse of office and causing considerable reputational damage to the company.
Nov 21, 2018: Finance Minister Ken Ofori Atta ruled out bail-out for Menzgold clients. He said greed motivated clients to invest their monies in Menzgold.
Nov 27, 2018: Customers demonstrated against Menzgold Ghana Limited despite calls from the company to call it off.
Dec 4, 2018: Statement issued from Menzgold directing all staff to proceed on leave and return to work on December 20.
Dec 20, 2018: Another Menzgold siege as desperate clients fear Xmas without cash.
Dec 21, 2018: A client of Menzgold petitioned the Presidency and five other key state institutions in a bid to retrieve his locked up cash. Menzgold also petitions Parliament over its inability to pay clients.
Jan 8, 2019: Aggrieved customers of Menzgold defied Police orders and staged a demonstration in the Ashanti Region capital. Seven were arrested.
Jan 9, 2019: Circuit Court issued warrants for the arrest of the Menzgold CEO, Nana Appiah Mensah and two of his relatives. He was wanted for defrauding by false pretence and money laundering.