Bank of Ghana advised us on Menzgold operations - NAM 1 tells court

The former Chief Executive Officer of defunct Menzgold Ghana Limited, Nana Appiah Mensah, a.k.a NAM1, who is standing trial for allegedly using his companies to induce and defraud over 16,000 members of the public, has told the High Court that it was the regulator, Bank of Ghana (BoG) that advised him on the operational structure of the companies. 

Mounting the witness box to give his side of the story in respect of the charges against him, NAM 1 was questioned by his lawyer, Paa Joy A. Boateng, during examination-in-chief to update the court on the incorporation status and license of Menzgold Ghana Limited.

In response, the accused explained that Menzgold, originally incorporated as Menzbank Ghana Company Limited, intended to set up and operate as the first “bullion” bank in West Africa if not the entire continent.

In pursuit of wanting to realise this vision, NAM 1 told the court that the BoG issued a publication, including Menzbank’s name as part of unlicensed micro finance institutions.

As a result, he said Menzbank’s in-house cousnel then wrote a letter to BoG after having cited the publication in the dailies, informing them of the fact that Menzbank was not a microfinance institution and, therefore, requested that Menzbank’s name be expunged from the list of unlicensed mico finance institutions. 

Meeting

He said the central bank responded by requesting all supporting documents and invited him for a meeting.

“As a law abiding entity, we submitted the Precious Minerals Marketing Company (PMMC) license and all other documentation they requested for of which they acknowledged receipt and Menzgold was subsequently given an opportunity in the meeting that was chaired by Mr Amoh Awuah, and other officers of the central bank to adequately speak to the issues of which we did to the best of our ability,” he said adding that at the time, Menzgold was known as Menzbank.

He further told the court that in the meeting, it was resolved that listing Menzbank’s name as part of the earlier publication in the dailies was a mistaken identity stemming from the fact that Menzbank was suggestive of financial institution which was why it was added to the list of unlicensed Microfinance institutions. 

Advice

Consequently, NAM 1 told the court that the central bank advised that they tweaked Menzbank’s name a bit to cure that defect.

“So more specifically, our team and that of the central bank collectively resolved that Menzbank with a “k” will be changed to one with Menzbanc now with a “c” to ensure consistency which is a cardinal element in business administration.

So Menzbank was changed to Menzbanc on the advice of the BoG,” he told the court. 

Again, NAM 1 testified that in the course of operations, the BoG reached out for a second time for another meeting after several months of having complied with the advice to change the name.

At the meeting, he said the prime concern was to the effect that the central bank kept receiving phone calls of members of the public enquiring as to whether Menzbanc was a licensed financial institution.

This was based on two factors, the first being the fact that the name ”Menzbanc” depicted a financial institution and so members of the public who were desirous of doing business with the company as part of due diligence often called the Central Bank to make enquiries.

The second reason, he said was that the company’s gold jewelry products/ tablets sold to buyers who often opted to be traded for extra values within the trading period had a semblance of financial investment.

After thorough discussions and considerations, NAM 1 told the court presided over by Justice Sedinam Awo Kwadam, that the central bank instructed him and his companies to continue to do business, devoid of confusion and controversies, as it was important to separate the sale of the gold jewelry products and the gold trading — buying and selling, by Menzgold.

He said the bank specifically told them that it was important to set up another distinct entity to handle the retail of the gold jewelry products while Menzgold focused mainly on its gold trading business area. 

The case has been adjourned to March 5, 2026 for further examination-in-chief. 

Background

NAM1 and two of his companies — Menzgold Ghana Limited (MGL) and Brew Marketing Consult Ghana Limited (BMCGL), have been charged with 39 counts of selling gold without a licence, operating a deposit-taking business without a licence, inducement to invest, defrauding by false pretence, fraudulent breach of trust and money laundering.

The allegations relate to defrauding their customers of various sums of money between 2016 and 2018, totalling GH¢340,835,650.

NAM1 has pleaded not guilty to all the charges and is on bail of GH¢500 million with four sureties.