Embattled Chief Executive Officer (CEO) of defunct Menzgold Ghana Limited, Nana Appiah Mensah, popularly known as NAM1, and his two companies have been ordered to open their defense to answer charges in the Menzgold case. This decision followed the High Court in Accra’s dismissal of his submission of no case to answer.
The Court ruled that the prosecution, through its nine witnesses, has been able to establish prima facie evidence against them in 35 out of the 39 counts. Justice Ernest Owusu-Dapaa, while analyzing the 39 counts, determined that the Court needs to hear from the accused.
Ruling on the submission of no case to answer, the Court stated that it appears NAM1 and Brew Marketing Consult did not possess a valid license to engage in the sale and purchase of gold. Consequently, a prima facie case has been established against NAM1 and his companies for selling gold without a license.
On the charge of operating a deposit-taking business without a license, contrary to sections 6(1) and 22(1) of the Banks and Specialized Deposit-Taking Institutions Act, the Court noted that Brew Marketing Consult is unknown as an entity authorized to sell gold to the public. The Court ruled that NAM1 and Brew Marketing Consult must answer the charge of selling gold contrary to section 99(1) of the Minerals and Mining Act.
Furthermore, the Court found that the Bank of Ghana did not endorse the deposit-taking business of NAM1 and Menzgold, and NAM1 will need to offer explanations to the Court.
On the charge of inducement to invest, the Court noted that using celebrities like Stonebwoy, Becca, Jocelyn Dumas, and Jackie Appiah on billboards appeared to influence the public to invest in Menzgold and Brew Marketing.
Justice Ernest Owusu-Dapaa ordered NAM1 and his two companies to answer 19 counts of defrauding by false pretense and acquitted him on the remaining counts after the prosecution abandoned three counts due to the unavailability of those victims. The Court also ordered the accused to open his defense to seven counts of fraudulent breach of trust and seven counts of money laundering.
EIB Network’s Legal Affairs Correspondent, Murtala Inusah, reported that the ruling requires NAM1 and his companies to answer these charges. The case has been adjourned to July 23, 2024.
Background
NAM1 pleaded not guilty to 39 counts of fresh charges and was granted bail in the sum of GH¢500,000 with four sureties without justification. The bail terms included an order for him to deposit his passport at the Registry of the Court and report to the CID headquarters every Thursday.
NAM1, representing Menzgold Ghana Limited and Brew Marketing Consult, also pleaded not guilty to the charges. The 39 counts included selling gold contrary to section 99(1) of the Minerals and Mining Act, operating a deposit-taking business without a license contrary to sections 6(1) and 22(1) of the Banking and Specialized Deposit-Taking Institutions Act, and inducement to invest contrary to section 344 of the Companies Act, 2019.
Other charges included 22 counts of defrauding by false pretense contrary to section 131(1) of the Criminal Offences Act, 1960, seven counts of fraudulent breach of trust contrary to section 128 of the Criminal Offences Act, 1960, and seven counts of money laundering contrary to section 1(2)(a)(i) of the Anti-Money Laundering Act, 2020.
Brief Facts
Menzgold Ghana Limited and Brew Marketing Consult Limited are sister companies owned by NAM1. Menzgold was initially registered as Menzbank Ghana Company Limited in 2013, while Brew Marketing Consult Limited was registered in December 2016. NAM1 is the director and CEO of both companies and the majority shareholder.
NAM1 operated Menzgold as a deposit-taking business under the guise of gold trading without the requisite license. On March 11, 2015, the Bank of Ghana (BoG) issued a public notice stating that Menzbank was an unlicensed deposit-taking institution. In response, NAM1 changed the company’s name from Menzbank to Menzbanc and later to Menzgold Ghana Company Limited in 2017.
The business model involved Brew Marketing Consult selling gold to the public for investment purposes in Menzgold, despite not having a license to sell gold. In 2016, the Minerals Commission granted Menzgold a three-year license to purchase and export gold, restricted to purchasing gold from small-scale miners for export only. However, Menzgold and Brew Marketing Consult breached this license by selling gold to persons in Ghana.
Between 2017 and 2018, NAM1 and Menzgold invited the public to purchase gold from Brew Marketing Consult and deposit it with Menzgold in return for profits. Over 16,000 people responded, depositing significant sums of money with the expectation of returns.
Despite warnings from relevant agencies, Menzgold and Brew Marketing Consult continued their operations. In September 2018, the Securities and Exchange Commission (SEC) directed Menzgold to suspend its business for operating without a license.
Petition and Investigations
Between November 2016 and March 2019, many customers of Menzgold and Brew Marketing Consult petitioned the police, complaining that they were unable to recover their investments. Investigations revealed that the accused took a total of GH¢1,680,920,000 from customers under false pretenses.
The investigations further disclosed that significant sums of depositor’s funds were transferred to Zylofon Media, a related company, and into NAM1’s personal bank account for personal use. The funds remained unpaid as Menzgold’s license was revoked. During investigations, several vehicles and gold bars were recovered from the accused, which have been auctioned, and the proceeds kept in an exhibit account.
Source: Ghana/Starrfm.com.gh/Murtala Inusah
