We can’t use taxpayers money to settle locked-up funds of ‘419’ institutions like Menzgold – Bawumia [ARTICLE]


He said that is not possible since Menzgold was not a licensed financial institution.

“Menzgold is not a licensed financial institution. We are talking about licensed financial institutions but if you set up your 419 institution and the Bank of Ghana warned repeatedly that people should not do business with Menzgold because they were not a licensed financial institution, so, you can’t use taxpayers’ money to pay locked-up funds of an institution that is not a licensed financial institution,” Dr Bawumia said.

Customers of the collapsed gold firm have been ‘crying’ for government’s help in the past 2 years.

They have embarked on numerous demonstrations to demand for their locked-up funds all to no avail.

Aggrieved Menzgold customers

Aggrieved Menzgold customers

Speaking in Techiman in the Bono Region, Dr. Bawumia said unlike the situation where the government rescued 4.4 million depositors whose funds got locked up in some banks and specialised deposit-taking institutions who were collapsed by their regulatory authorities over infractions and insolvency, the customers of Menzgold are not entitled to such rescue since they defied all warnings from the BOG to do business with an unlicensed financial institution.

Two weeks ago, some aggrieved customers of the gold-trading company said they deserve a bailout just like the other companies that were licensed by the Securities and Exchange Commission (SEC) and collapsed with a “written letter” because their operations were contrary to their terms of license.



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