An economist and head of finance department of the University of Cape Coast, Prof. John Gatsi has waded into the Menzgold crisis describing it as “now a serious social problem”.
According to the respected economist in a statement sighted by Awake News, he said “It is a fact that citizens have the duty to invest in reasonable investment products” but “so many discussions and notices issued by Bank of Ghana (BoG) should be enough to trigger disinvestment by those who invested”
Prof. Gatsi explained that “Serious breaches that may lead to erosion of investments normally go with arrest and in the absence of such arrest, it is not clear if indeed the regulator sees Menzgold as operating deceptive scheme”.
“Just as respected people who invested in the gold scheme encouraged others, it is equally important to note that many investors who believe that the owners of the investment scheme were close to political leaders both past and present would not take any warning by BoG seriously” – He added
Prof. Gatsi is also with the view that “Lack of regulatory clarity from SEC and BoG very early cannot be overlooked” hence one of the factors that have contributed to the Menzgold scheme’s growth to this level and added that “Government cannot be mute over an alarming and full grown social problem”
Thousands of customers of the gold dealership firm have for months now, are unable to access their investments following the Securities and Exchange Commission (SEC) order for its closure citing unregulated business model.
Read the full statement:
It is a fact that citizens have the duty to invest in reasonable investment products. So many discussions and notices issued by Bank of Ghana (BoG) should be enough to trigger disinvestment by those who invested.
Lack of regulatory clarity from SEC and BoG very early cannot be overlooked
Serious breaches that may lead to erosion of investments normally go with arrest and in the absence of such arrest, it is not clear if indeed the regulator sees Menzgold as operating deceptive scheme.
Just as respected people who invested in the gold scheme encouraged others, it is equally important to note that many investors who believe that the owners of the investment scheme were close to political leaders both past and present would not take any warning by BoG seriously
Investors in Menzgold did not receive proper education. Some described them as being greedy. The truth is proper financial literacy reduces the number of people who invest based on greed. The fact that workers from the security institutions, BoG and Ministry of finance also invested in the scheme is clear evidence that the project ahead of of us is more of concrete financial literacy.
The fact we should embrace is that the Menzgold problem has now moved to what our friends in sociology and development studies will call a Social Problem. This is not about whether or not government should sell the assets to pay investors. When you look at the investment volumes by individual Ghanaians and their frustration, you should know the effect on their families, the unthinkable decisions that some may be taking.
This is where sociology, governance and financial market regulations come together to deal with social problems
Government cannot be mute over an alarming and full grown social problem.
As to how this should be handled is part of how our governance responds to emerging social problems
Source: AwakeNewsOnline.com | Efo Korsi Senyo
