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Docket is prepared for NAM 1’s prosecution – Attorney general.

According to Attorney-General and Minister for Justice, Godfred Yeboah Dame, the docket for the prosecution of Nana Appiah Mensah, the former CEO of Menzgold, is almost ready.

“I’m happy to say that after painstaking investigations, the docket on that financial crime is almost ready for prosecution to commence,” he said.

Speaking yesterday at the Cambridge International Symposium on Economic Crime at Cambridge University in the United Kingdom on “The Financial Sector Crisis in Ghana,” Mr. Dame claimed that many unlicensed entities’ activities contributed to the financial sector crises that shook the foundations of the nation’s financial system between 2017 and 2020.

Cambridge Forum

The forum was organized by some of the top academic and research institutions in the world with the assistance of several governmental organizations, the judicial system, attorneys, compliance organizations, and the business community.

It offered a forum for the practical examination and discussion of the genuine dangers that criminal and subversive activity pose to the world.

Lavish Lifestyles

Speaking on how the leaders of such illegal financial entities lived their lives, the minister said: “The leaders of such entities often lived lavish lifestyles in response to their activities.”

“Prominent among such institutions was an amorphous organization operating a microfinance institution under the guise of gold trading and illegally using the name of a bank.

“It called itself the MenzBank. Apparently, Menzgold, which it was also called, had been dealing with the deposit of gold and collectibles for the public and issued contracts with guaranteed returns to its clients without a license from its regulators and relevant authorities,” he added.

Caution Ignored

Tens of thousands of people joined the scam despite the central bank’s warnings, Mr. Dame told the conference, and after the company was shut down by the security authorities, the consumers were unable to retrieve their files.

“The company relied on the greed and ignorance of thousands of people and hardworking Ghanaians, resulting in the loss of millions of dollars,” he said.

“The situation has caused misery and distress in many homes and unleashed social crisis, as thousands broke out on the streets to demonstrate throughout the country,” he added.

He claimed that the Menzgold saga had actually caused people to lose their houses and in some cases, their marriages.

Other cases

On a bigger scale, Mr. Dame claimed that the Office of the Attorney-General was also bringing high-profile cases involving the offenses of theft, willful financial damage to the state, corruption, fraud, procurement violations, and money laundering.

In those situations, he claimed, more than $850 million was at stake.

He claimed that 20 people and businesses were put on trial for offenses that included theft, breach of trust, money laundering, dishonest receiving, and inflicting financial loss to the state in order to stop the current scenario from happening again.

Sovereignty of banks

Regarding the financial crisis in more detail, the minister cited the Bank of Ghana and stated that the main reason for the confiscation of the operating licenses of the impacted banks was their sovereignty.

“A deeper examination of the banking sector crisis that rocked the financial sector of the country showed that poor corporate governance, non-performing rules, breach of directors’ traditional obligations, credit risk and regulatory lapses were responsible for the vulnerabilities the banks were exposed to,” he asserted.

Internal auditors, who were supposed to follow normal accounting procedures, Mr. Dame claimed, became partners in the illegal activities.

implications for the economy

He stated that the financial crisis had an impact on the nation’s economy and noted that it “was the most severe economic crisis to afflict Ghana since independence in 1957.”

He continued by saying that the COVID-19 outbreak dealt the economy yet another fatal blow.

The minister claimed that the administration was fighting corruption to the best of its ability.

 

Disclaimer: The opinions expressed in this publication do not in anyway reflect the opinions of State News Ghana

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