The clients of Menzgold Ghana Limited have been handed a lifeline in their quest to recoup their deposits from the troubled gold dealership firm.

The Minister of Finance, Mr Ken Ofori-Atta during an interaction with officers of the Ghana Armed Forces (GAF) at the Burma Camp in Accra on Friday, February 22, assured the officers that the assets of Menzgold CEO, Nana Appiah Mensah will be liquidated to repay the deposits of the clients of the troubled company.

He said the government was in the process of liquidating properties and assets of Nana Appiah Mensah to repay the clients of the firm who are due over GH¢200 million.

"I think we have come up with the realisation that maybe over 200 million... is outstanding... He [Nana Appiah Mensah] has been apprehended in Dubai and I am sure a committee will be put together to see how to liquidate and whatever it is that can be found can be given to those who gave money," Mr Ofori-Atta said.

"But, government is not going to be spending for issues of this nature where we are very clear that it is not licensed and you know the risks that you have taken".

The Finance Minister's explanation on Friday was in response to an appeal by some soldiers who had invested in Menzgold and had used the opportunity of an interaction with President Akufo-Addo at the Burma Camp to call on government for help.

President Akufo-Addo who was with the Finance Minister rather asked him to respond to the soldiers' appeal.

Background

In December 2018, 53 soldiers dragged Menzgold to the High Court for failing to pay back their total investment of GH¢2.5 million.

 

The plaintiffs — from the Ghana Navy, the Ghana Air Force and the Ghana Army — are praying the High Court to order a refund of their money.

According to the plaintiffs, all efforts to retrieve the money had been unsuccessful.

Per the writ of summons, they want the court to order a refund of their money, ranging between GH¢18,000 and GH¢244,000.

The amounts quoted on the filed court documents represented the plaintiffs’ principal.

The plaintiffs argued that even if the defendant claims that it cannot pay their interest, they are entitled to their principals.

Nana Appiah Mensah alias NAM 1 is currently standing trial in Dubai, where he is facing a misdemeanour charge over a US$23 million deal, gone bad.