Menzgold Customers Sue Government

Some Costumers of defunct Gold dealership and investment firm, Menzgold has dragged four Government agencies to court with claims they were negligence in all the happenings surrounding the company.

The agencies involved are Bank of Ghana (BoG), Economic and organized Crime Office (EOCO, Securities and Exchange Commission (SEC).

The suit filed by Ms Amanda Clinton,(Head of Chambers at Clinton consultancy) on behalf of the Aggrieved customers, demands an amount of 11,402.000.00 in damages.

Ms Clinton believes her clients were at no fault investing in the company.

“Although courts do not readily award damages against public institutions, in some cases the court may impose liability in negligence where the authorities owe the claimants a duty of care (involving reasonable foreseeability of loss, sufficient proximity of relationship and where it would be fair, just and reasonable to impose a duty),”

to prevent the plaintiffs from investing in Menzgold Ghana Limited and in turn Brew Marketing Consult Limited and that the early identificati on and shutting down of an unregulated deposit-taking institution” by the defendants would have prevented them from investing in the same.

“Defendants did not follow their own internal policies when it comes to ponzi schemes, illegal deposit-taking and criminal enterprises including specifically laid down policies on how to detect a ponzi scheme: ‘unreasonable and unrealistic high returns, unregistered financial products that are difficult to understand, complex strategies to confuse victims, multi-layered complex and fairly new products, inadequate documentation on the product, paper work is not properly made out, poor administration, band-wagon signs and herd mentality and behaviour.’ Ms Clinton wrote in a statement of claim.