Credible information gathered by Pulse Ghana indicates that Menzgold is the main financier of Zylofon Media and all the other companies owned by Nana Appiah Mensah.
It has been a testing last few months for Menzgold Ghana Limited and its CEO Nana Appiah Mensah following a standoff with the various regulatory organisations over the company’s operations.
The gold dealership firm, which offers very high returns to customers, has come under the spotlight in recent months after several inconclusive tussles with the Bank of Ghana (BoG), the Minerals Commission and now the Securities and Exchange Commission (SEC).
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The Central Bank and Minerals Commission maintain that Menzgold is taking deposits and locally selling gold despite not having the requisite license to do so – an allegation that the gold firm vehemently denies.
However, the seriousness of the issue was confirmed earlier this month when Menzgold was directed by SEC to shut down its gold trading activities.
Currently, the operations of Menzgold remain closed to the public, with the company announcing September 28 as a tentative date to lift the suspension on its Gold Vault Market service.
It is obvious that all is not well at Menzgold, and despite the many assurances from the company to its customers, it is currently uncertain whether the gold dealership firm will emerge from this case unscathed.
What is has now been revealed, though, is that the fall of Menzgold spells the fall of Zylofon Media and all the other subsidiary companies owned by Nana Appiah Mensah.
Credible information gathered by Pulse Ghana indicates that Menzgold is the main financier of all the other companies owned by the young businessman.
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A grapevine source within the growing conglomerate has confirmed that it is the funds accrued from Menzgold that is used to run the other subsidiary companies.
“Menzgold is the main financier of the other companies owned by Nana Appiah Mensah. It is the Menzgold money that is used to finance all the other companies like Zylofon Media, Brew Marketing, Zylofon Cash and the others,” the source told Pulse Ghana on condition of anonymity.
The source also confirmed that the continuous existence of the other companies owned by the young businessman now solely depend on the survival of Menzgold.
As it stands, Nana Appiah Mensah, popularly known as NAM1, owns a couple of companies both in Ghana and outside the country.
These include Cheetah Security Company Limited, Narosa Hotel, T.I.A Holdings (USA), Zylofon Media, Menzgold, amongst others.
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However, from our information gathered, it appears most of the companies are dependent on the funds made from Menzgold.
It is still premature to conclude on whether Menzgold is a genuine business or a Ponzi scheme, but there is no doubt that the fall of the gold dealership firm could hold serious consequences for the other subsidiary companies owned by Nana Appiah Mensah.