Some aggrieved customers of Menzgold are happy with the flagbearer of the National Democratic Congress (NDC), John Dramni Mahama’s promise to repay their investments in full.
After Mahama’s pledge last week, Mr. Fredrick Forson, the spokesperson for the Coalition for aggrieved customers of Menzgold, said: “We have faith in what he has said.”
“We are really rallying behind him. We are in support of that claim…For almost two years, nobody has been able to respond to our call,” he said in a Citi News interview.
Mr. Forson also rubbished assertions that Menzgold customers were not deserving of state support because their investments are locked in an unregulated company.
“That is a flawed argument. The same fund managers, who, according to SEC [Securities and Exchange Commission], were flouting the law, are being paid by the taxpayer’s money,” he said.
The government commenced a financial sector cleanup in August 2017 which led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions.
The Securities and Exchange Commission (SEC) announced the revocation of licenses of 53 Fund Management Companies.
The estimated cost of the state’s fiscal intervention, excluding interest payments to depositors, from 2017 to 2019 was pegged at GHS16.4 billion.
Mr. Mahama said an NDC government would pay all persons who have funds locked up with the collapsed financial institutions within one year.
“We shall not put up any long-term payment plans that will further worsen the living conditions of the victims,” he said.
He also said the NDC would establish a Financial Services Authority “that will be responsible for ensuring that consumer financial markets work for consumers, providers and the economy as a whole.”
The Authority is intended to oversee all financial products and services that are offered to consumers.
Mr. Mahama said the authority will “effectively and efficiently prevent and stop the challenges that have confronted customers of Menzgold, DKM among others.”