Doctors, Lawyers, Bankers Have Huge Sums With Menzgold

A customer of gold dealership company, Menzgold, Kenneth Nimo, has said some professionals including lawyers and doctors may have lost huge sums of money by investing with the company.

Speaking on Citi TV’s Point of View, Mr. Nimo said these professionals decided to invest with Menzgold ostensibly because they were convinced it was not a ponzi scheme.

“Every single individual at a point in time, regardless of how skeptical they were, found themselves convinced enough to invest with Menzgold. We therefore have every reason to believe that there are people, lawyers, Bankers, Doctors who have lost huge sums of money to Menzgold. “

BoG's long silence on Menzgold saga 'worrying' – Customer

Kenneth Nimo, who’s the leader of the Aggrieved Menzgold Customers group, also described as problematic the Bank of Ghana and the Securities and Exchange Commission’s (SEC) long silence over current happenings in the company.

According to him, the current challenges of Menzgold started after the two regulators ordered the company to shut down the their gold vault operations.

He said both institutions had failed to bring finality to the matter.

“They told us that they have investigated them. We have not seen any report to that effect. They should be able to audit their accounts. They have the power to do that, sowhy is that after creating fear and panic they have actually gone to sleep. I believe that is quite problematic. If they have stepped in, they should bring finality.”

Mr. Nimo and his group who held a news conference on Wednesday have given Menzgold a four month ultimatum to pay each customer fifty percent of their monies.

They said they are not convinced with Menzgold’s 90-day deadline to pay outright customers who wish to terminate their transaction with them.

Menzgold – The story so far
A letter from the Securities and Exchange Commission (SEC) in September ordered Menzgold suspend its gold trading operations with the public.

According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns for clients without a valid license from them.

The SEC's directives and the responses from the company have received mixed public reactions with some applauding the regulator for its actions, while others have described it as a witch-hunt.

The regulator added that Menzgold's actions are in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”

The company has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”

After initially indicating that it was still open for business , the company eventually suspended any new business related to its Gold vault market temporarily.

The initial September 19 date the company had set for reopening was pushed back to September 28, as talks between Menzgold and the regulator continue.

Menzgold then hired a UK law firm , Baker & McKenzie LLP, to legally confront the SEC.

The latest development, however, which was to come as a relief to their customers, is Menzgold's suit against 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.

Menzgold among other things asked the court to stop the Bank of Ghana and the SEC from publishing what it described as “derogatory notices” against its business.

Will Menzgold's customers be paid?
Following the postponement of a number of scheduled payments to its customers, Menzgold stated that clients who wish to terminate their investment transactions with the company, will receive a full payment of their investment in 90 days if the ongoing misunderstanding with statutory institutions is resolved.

“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.”