well as of its Chief Executive Officer Nana Appiah Mensah and all the company's other directors

and managers and, in turn, use the proceeds to pay the between 700,000 and one million clients
whose investments have been locked up since August of 2018.

2. To date however, very few assets have been seized and traced locally and internationally and
the directors are still actively engaged in business in Ghana whilst it appears living off some of
the proceeds gained from the Menzgold venture. The 48 criminal charges all 3 directors currently
face are still active although the criminal case has continuously been adjourned for over 1 year.

3. Several jurisdictions have enacted separate legislation dealing with ponzi/pyramid schemes. e.g.

 South Africa: Unfair Business Practices Act, 1988.

 Singapore: Multi-Level Marketing and Pyramid Selling (prohibition) Act, 2001
 Malaysia: The Interest Scheme Act, 2016. Direct Sales and Anti-Pyramid Scheme Act,
1993.
 Mauritius: is presently working on one

MANDATE OF THE ATTORNEY-GENERAL’S DEPARTMENT

4. Given that:-
A. The mission of the Attorney General’s department is in part to provide quality advice and
legal service to the Government and the People of Ghana
B. Its policy objective is to promote access and efficiency in the delivery of justice
C. The department exists in part to promote the fight against corruption and economic
crimes at the earliest opportunity
D. The department exists in part to enhance capacity for policy formulation and coordination
E. The mandate of the Attorney-General’s department is in part to (as stated under article
88 of the 1992 Constitution) to draft legislation and vet subsidiary legislation
We ask that Parliament, and in particular the finance committee, work with the Attorney-
General’s department, even at this late stage, to cull as much assets as possible so that our clients
may be able to retrieve some funds. Furthermore, if parliament works with the Attorney General’s
 department to follow suit with other countries and actively pass legislation dealing with
ponzi/pyramid schemes, this is another way of addressing the Menzgold matter, even at such a
late stage and to set a precedent so that this level of financial loss to the general public never
occurs again particularly since Menzgold was caught by Act 929, but illegally remained
unregulated.

5. Although the Attorney General’s department has a host of effective mechanisms at its
disposal, including the ability to seek swift ex-parte injunctions to preserve financial assets
in the public interest and make international requests to cull assets as well as trace and
retrieve assets disposed of in different peoples’ names and in different countries; (and the
earlier this had been done, the higher the chances of tracing and culling more assets); I hope that
Parliament may work with the Attorney-General’s department to follow suit with other countries
and enact separate legislation dealing with ponzi/pyramid schemes.

DUTY OF KEY GOVERNMENT DEPARTMENTS

6. Ultimately, it is the duty of key government departments including the Attorney General’s
department, the Security and Exchange Commission, Bank of Ghana, Economic and Organized
Crime office, National Security, Interpol, Criminal Investigation Department, National
Intelligence Bureau and even the Office of the President to ensure that they protect all investors,
those in the regulated and unregulated sector, since this is a public interest. This is because recent
years have shown that white-collar criminals thrive and excel when operating illegally in
regulated sectors whilst remaining illegally unregulated.

7. We saw this in particular with the menzgold matter where the company was engaged in capital
market activity and was thus caught by Act 929 but mysteriously remained unlicensed for
close to 5 years. Furthermore, the assets of the directors of Menzgold are yet to be effectively
seized and distributed among victims of Menzgold, particularly because government departments
allowed an unusually long period of time to pass before freezing assets; culling assets and did not
do an efficient international trace of assets at the earliest possible opportunity.
 8. At present, government departments appear to now be allowing the directors of Menzgold to
operate freely in Ghana, living in their houses and operating businesses whose assets could have
also been seized in the public interest and for aggrieved customers.

9. Ultimately multi-government agency efficiency can be maximized with the Attorney

General’s department following through with its duty of policy formulation and coordination
particularly in the area of ponzi schemes which requires multi-government agency efficiency in
order to minimize financial loss at the earliest possible opportunity; and to cull illegally acquired
assets at the earliest possible opportunity and ensure justice prevails.

THE RISING TREND OF PONZI SCHEMES IN GHANA

10. Over the past two decades, there have been several ponzi schemes in Ghana. The most dramatic
cases in Ghana were Pyramid and R5 schemes in 1995, which authorities such as Bank of Ghana,
Ghana Police CID and BNI faced difficulties in dealing with the schemes. There has altogether
been a steady growth of Ponzi schemes as seen with: CB Net Marketing Concept in 2013, E
Finance and More, Diamond Investment Ltd, Global Coin Community, Fine Fort, TCL Savannah
Investment Ltd. In 2016 and Menzgold Ltd.

PUBLIC INTEREST

11. These pyramid schemes gain legitimacy and credibility the longer our state institutions allow
them to run without shutting the operations down physically. Without the closing of the doors of
‘419’ schemes at the earliest possible opportunity, more customers invest in the schemes and
respectfully, contrary to government’s assertions, warnings are not enough to stop
thousands more investors investing in companies with open doors. Ultimately because ponzi
schmes are strategically designed to attract more investors who invest more monies into these
fraudulent schemes the longer they remain open.

12. It is therefore in the public interest for government agencies to have a coordinated response, issue
swift ex-parte injunctions until the nature of the scheme is determined (if a credible suspicion is
 raised) and ensure thousands of Ghanaians don’t invest millions of dollars in ‘419’ companies
since warnings are not enough and the government has a duty to close down ‘419’ companies.

13. Altogether, it is admitted that members of the public can be gullible even when warned. However
government institutions are designed to protect ALL members of the public to a high standard at
the earliest opportunity and: poor coordination and cooperation among financial regulators,
lack of specialization and speedy disposition by courts, lack of willingness to investigate and
prosecute unregulated schemes and unwillingness to utilize necessary enforcement tools, as
well as unwillingness of some government departments to adequately address financial
misconduct including the operation of ponzi schemes, should we respectfully submit, be
addressed by parliament in the public interest.

14. This is especially so since ponzi schemes are becoming more sophisticated and those in power
cannot leave the public in the hands of criminals who bait and run. Ultimately, some companies
are unregulated however they should be regulated earlier by government institutions and if not
regulated, shut down at the earliest possible opportunity for being ‘419’ and illegally operating
outside our enacted laws.

REQUESTS

15. On behalf of our clients

A. We therefore ask that Parliament, and in particular the finance committee, work with the
Attorney-General’s department, even at this late stage, to cull as much assets as possible
B. We also ask that Parliament works with the Attorney General’s department to enact
additional legislature that addresses ponzi/pyramid schemes and
C. That parliament issues specialist guidelines for all government agencies mention in this letter
(Paragraph 6 above).

So that Ghana is not left behind when it comes to our knowledge of and response to criminals
who prey on the public for financial gain and remain at large, profiting from their misdeeds, in
full public glare.
 CONCLUSION

16. By not dealing effectively with criminal enterprises and individuals, the credibility of public
institutions is marred both locally and internationally and ironically, it is an open invitation to
future criminals, since government maintains its position that it can do nothing for those who
invested in an unregulated company (whilst admitting that the company fell under their remit but
somehow remained unregulated and open for business for years without sanction or adequate
consequences).

We look forward to your response regarding our requests.

Kind regards,

AMANDA AKUOKOR CLINTON BIANCA AKWELEY CLINTON

PARTNER PARTNER