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Twenty-eight former clients of the defunct gold dealer Menzgold Ghana Limited have sued four state agencies alleging they were negligent in the Menzgold saga.
The four agencies that former clients have sued are the Securities and Exchange Commission (SEC), the Economic and Organized Crime Office (EOCO), the Bank of Ghana (BoG) and the Attorney General’s Department.
They are demanding GH ¢ 11,402,000.00 in damages.
The lawsuit was filed on behalf of clients by Clinton Consultancy Chief of Chambers, Ms. Amanda Akuokor Clinton.
According to Ms. Clinton, her clients would establish in court how the plaintiff’s negligence led her clients to invest in Menzgold and lose their deposits.
“While courts do not easily award damages to public institutions, in some cases the court may impose liability for negligence when authorities owe plaintiffs a duty of care (which implies reasonable predictability of loss, proximity enough of the relationship and when it is fair, just and reasonable to impose a duty), “Clinton said in a statement.
Claim statement
The plaintiffs argue that the defendants did not actively and consistently work together actively to identify and close the Menzgold Ghana Ltd and Brew Marketing Consult business in order to prevent the plaintiffs, who were late investors, from investing in the companies.
They also insist that the BoG notices were not sufficient “to prevent the plaintiffs from investing in Menzgold Ghana Limited and, in turn, Brew Marketing Consult Limited and that the early identification and closure of an unregulated deposit-taking institution “on the part of the defendants it would have prevented them from investing in it.
The plaintiffs contend that “the defendants did not follow their own internal policies when it comes to Ponzi schemes, illegal deposit taking and criminal ventures, including specifically stated policies on how to spot a Ponzi scheme: ‘unreasonable and unrealistic high returns, finance unregistered products that are difficult to understand, complex strategies to confuse victims, complex multi-layered and relatively new products, inadequate product documentation, improperly drafted paperwork, mismanagement, road signs and herd mentality and behavior.
Source: graphiconline.com
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