Economic and Financial analyst Dr. Lord Mensah has described calls made by the National Democratic Congress (NDC) that government settles Menzgold customers whose monies have locked up in the company as one that lacks economic sense.
He adds that the stance by the opposition NDC is not only lacking economic sense, but is uncalled for.
The lecturer at the University of Ghana Business School explained that government does not have the financial strength to pay back the victims.
Dr. Lord Mensah, however stated that the case might have been different if the victims were paying taxes on the interests they were receiving from the gold dealership firm.
“It was an investment space with interest rates hovering around 25%-33% per year and an investor opted for it… but in going forward, the government can say that this guy has been defrauding people which is a criminal offence and in that case, he will be subject to the law. But then also, if he is subject to the law, then obviously the law can decide whether we should liquidate the company’s assets” he said
He also called for the non-politicization of the issue to avoid a similar occurrence in the future.
The National Democractic Congress, at the second edition of the party’s Moment of Truth series held at its headquarters in Accra on Wednesday accused the Akufo-Addo led government of playing a role in the activities of Menzgold.
According to the National Communications Officer for the party, Sammy Gyamfi who addressed the press, “government is complicit and government cannot feign ignorance of the events that have led us to where we are today in a desperate attempt to shirk its responsibility of ensuring that Menzgold customers are paid back their investments.”
Meanwhile, government has shut the door on any hope customers of the embattled Menzgold Company Limited have of being cushioned or settled with taxpayers’ money.
“While government sympathizes customers on the difficulties encountered with their transaction with the company, the state cannot and will not resort to the use of taxpayer’s monies to refund customers monies,” a statement from the Information Minister said last week.
In the statement that touched on a variety of issue ranging from President Nana Akufo-Addo’s purported endorsement of Menzgold CEO, Nana Appiah Mensah, to the work of security agencies, the government reminded that citizens were warned of Menzgold’s shaky foundation.
“This warning was made as far back as April 2016, and, unfortunately, was disregarded by many customers of Menzgold. BoG and SEC are, therefore, not clothed with any legal mandate to refund monies clients.”
“Customers whose contractual obligations have not been met by the company are entitled to seek a legal remedy to retrieved their funds paid to the company ostensibly to buy gold,” the statement added.
Story by: Osei Antwi|Universnewsroom.com