The Accra High Court has dismissed a ‘submission of no case’ filed by the founder of defunct Menzgold, Nana Appiah Mensah popularly known as NAM1.
The court has also ordered that NAM 1 to open his defense to answer charges in the Menzgold case.
NAM 1, is standing trial for allegedly defrauding the public of about GH¢340million during the operations of Menzgold, a supposed gold buying company.
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.
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.
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 therefore 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.
The case has however been adjourned to July 23, 2024.
