Menzgold Saga, Who to Blame; Regulatory Bodies or Investors?

                                         

Of several commentaries, thus far, on Menzgold; its embattled investors and the regulatory bodies, I find none irritating than the claim that the regulatory body tried halting activities of the now defunct company, but was resisted by demonstrations by customers- who accused regulators of attempts to discourage local companies like Menzgold from operating.

On top of this, these customers already had ignored several warnings issued by the regulators, barring them from investing with Menzgold. Hence the conclusion: They (customers) invested out of greed and must suffer the brunt of their greed.

The sort of defence as held by various actors of the regulatory bodies, and some of the larger Ghanaian populace, if not shallow, one can’t tell what it is.

In the first place, the already taken trajectory of apportioning blame, especially, from the side of the regulatory authority is a nonstarter. If not a sign of irresponsibility, what it is?

C’mon! Why were the regulatory bodies created in the first place, if not to crack down on activities as fraudulent as allegedly, that of Menzgold, protect the public and promote investor confidence?

Many of us might have fallen for the excuse that warnings were issued. In calling a spade a spade, if it is about issuing warnings, then we don’t need a regulatory body in the first place. These institutions can’t be sustained with the taxpayer’s contribution only to warn but bite.

If it’s about warnings, trust the human intuition to serve best. Though often than not, we have ignored it leadings because the illusiveness of the better outcomes of our actions often blind us. Only to venture and suffer the consequences. Thereafter we are made to face the music for our insanity to reason.

                                            
                                          File Photo: Menzgold Boss; Nana Appiah Mensah

I believe this describes the current situation of people who invested with Menzgold, their intuitions might have warned them, but it does happen to all of us at times.

Obviously, the case under consideration like many in the past goes beyond the individual and intuition. It is about states and the protection it guarantees her people.

This is an establishment which has rode on media and celebrity endorsement to attract the magnitude of investors it had. Not only this, come to think of the story of its operations in Spain, the United Kingdom and Switzerland.

This is why we have the many establishments like the FDA, SEC and the Bank of Ghana in the name of regulatory bodies. It is not for the luxury of it. The individual can be fooled, but not the institution. This furthers a call made by President Obama for strong institutions during his last visit.

For truth sake, SEC is not a warning issuing body, but one to act. This is why it has been filled with men to steer its operations.

Per the body’s website, SEC is established by the Securities Industry Act, 2016 (Act 929) (‘the Act’) with the objective to regulate and promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected. Such an involving mandate can’t be achieved with mere warnings, it can’t bite.

This is why the body must accept blame for the operations of Menzgold, if they were not partners as I’m thinking. As funny as it might sound, the systematic nature of such occurrences recently gives a reason for one to think for a case of create, loot and share.

I don’t think the country so soon has forgotten about DKM and God is love…

Okay, let’s assume without admitting the warnings were enough.  Then delicate institutions like the Food and Drugs Authority should also go on a warning spree without action. I wonder what might remain of us as a country.

Then and there, I think we shall rethink our position of blaming the ordinary Ghanaian for investing with entities like DKM and now Menzgold. I mean, which “sane” fellow with little knowledge about risk assessment with respect to investment would forgo a 15% interest for a 1%?

In the scenario of the FDA I am trying to make, we can’t blame the sick for accessing an unauthorised drug, which has made its way into the market, when that person has not what it takes it detect. Same could be said of victims of the Menzgold scam.

It is time enough we admit ours is a weak system which is gliding towards “doom”. I don’t need a cross-over watch night service to foretell this.

Unless the system as weak as it appears is a creation of the big men in suits and ties for their individual benefit, then SEC should admit blame for failing in its mandate to protect the investor.

We should not be mean. Blaming the disgruntled Menzgold investor is adding insult to their injury. If we can’t empathize with them, there’s no need adding to their misery.