MenzGold Moves To Terminate Transaction Of Customers
Customers who wish to terminate their investment transaction with gold dealership company, Menzgold, are expected to register their names today, Tuesday, October 9, 2018, at various branches of company.
This, according to the Head of Communications of the company, Nii Amarh Amartefio, will aid the firm give back full payment of investment to registered clients in ninety days.
Speaking to Citi News, Mr. Amarh Amartefio said branches of the company will have special client relations desks for the registration exercise.
“We are going to set up a special client relations officer's desk where everybody has to go for their branches to write their names. Those who really want the transaction to be terminated they can go to the various branches and within 90 days if you want your principal to be paid to you, by that time we would be able to pay everybody's principal.”
Meanwhile, a group calling itself, ‘Aggrieved Menzgold Customers’, say a meeting will be held with the police later today, Tuesday, to agree on a date to stage a demonstration against the gold dealership company.
“Menzgold hasn't had any meeting with any of us concerning this three month payment they are trying to bring out. We want to have this demonstration to express our disregard with what is going on,” vice president for the group Mark Mensah said.
'We may pay in 90-days if you terminate your transaction' – Menzgold
Menzgold in a statement released on Monday explained that customers who wish to terminate their investment transaction with gold trading company, Menzgold, will receive a full payment of their investment in 90 days if the ongoing misunderstanding with statutory institutions is resolved.
The company said the statement was part of an agreement reached with a section of its customers at a meeting held in Accra on Sunday.
“Should Menzgold succeed in reaching an amicable resolution with the authorities, customers wishing to continue trading with Menzgold are free to exercise the option of continuing to trade with us. Similarly, customers wishing to terminate their business with Menzgold are free to do so and should be rest assured of their full payment in 90-days as stipulated…” the statement said.
Menzgold further indicated in the statement that “it may not be possible to pay all customers 50% of the total value of gold traded” as suggested.
It was however quick to add that the company's board has directed management to “assess the company's potential cash flow and determine the exact percentage that can be realistically honoured by the company to all customers in four (4) weeks.”
The company said the percentage to be paid these customers will subsequently be officially communicated in a press release and by direct communication with each customer.
Menzgold has not been able to pay matured returns to its investors since the Security and Exchanges Commission (SEC) ordered it to suspend its gold trading operations to the public.
The company in an attempt to call the bluff of SEC came up with a payment schedule to pay its clients, but the said payments have been postponed for three consecutive times.
The delayed payments continue to stir up anger among Menzgold customers, as they have vowed to use every means possible to retrieve their investments.
We can't pay dividends due to SEC's action – Menzgold
Menzgold had earlier said it is unable to pay its customers matured dividends on their gold investments due to the action that was taken against it by the SEC.
“The gold collectibles offered for trade by patrons of our gold vault market product are subject to our quality controls and traded for profit which is shared as an extra value with the product owner or trader. Any act, order or instruction, therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which extra values are charged and paid to those entitled,” Menzgold said in a statement dated September 25, 2018.
But the SEC did not agree with Menzgold's position, saying its action did not stop them from paying customers returns on already existing investments.
Meanwhile, the SEC has indicated that it is yet to receive adequate information from Menzgold after it ordered the suspension of its gold trading business.
Menzgold has sued the Securities and Exchange Commission (SEC) and the Bank of Ghana.
The company in its suit is seeking from the court an order directing the two institutions to stop interfering in its business.
They are also asking the court to stop the Bank of Ghana and the SEC from publishing what they have described as “derogatory notices” against their business.