Ghanaian famed rapper and CEO of Sarkcess Music, Michael Owusu Addo professionally known as Sarkodie, has taken a stand to support embattled CEO of Menzgold, Nana Appiah Mensah.
Sarkodie tweeted “One man doing the most for our beloved country. Knowing him personally he genuinely cares about the country’s progress … might not know the ins and outs but one thing is for sure – the Nam1 mission is for a better Ghana”
One man doing the most for our beloved country 🇬🇭🇬🇭🇬🇭 knowing him personally he genuinely cares about the country’s progress … might not know the ins and outs but one thing is for sure – the Nam1 mission is for a better Ghana 🙏🏾 Bless @mn_appiah pic.twitter.com/mrSGgx47d9
— Sarkodie (@sarkodie) September 13, 2018
Menzgold’s troubles
The Securities and Exchange Commission ordered Nana Appiah’s company, Menzgold, to suspend their operations with the public with immediate effect calling it “illegal”.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.
The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
Hit back and u-turn
Menzgold did not take the directive initially and tried to hit back at the Securities and Exchange Commission through their lawyers, Kwame Akuffo & Co Unlimited but in a sharp u-turn, Menzgold issued a statement halting all activities related to their Gold Vault Market for six days, by which time they believe all pending issues related to the Gold Vault Market Product would have been ironed out.
“This decision, though very unfavourable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state,”
Panic Withdrawals
Shortly after SEC issued the “stop trading” directive, Joy News editor, Araba Koomson, visited the East Legon premises of the company and reported that many of their customers wanted out.
She said some of the customers have between ¢50,000 to ¢100,000 in deposits with the company and have been trying to withdraw them.
At the time of her report, the situation seemed to be under control but by 1 pm (13 00 GMT) when Joy Business’ Karen Dodoo visited the premises, about 200 customers were on the premises demanding their deposits.
The gold dealership is still in talks with the SEC to iron out issues and resume operations.
