Business General

Menzgold customers to hold nationwide demo

Customers of gold dealership company, Menzgold Ghana Limited, say they will embark on a nationwide demonstration by the end of this October, to express their displeasure at the company’s failure to pay them the extra value on their investments as promised earlier.

According to the spokesperson of a group calling it self ‘Aggrieved Menzgold Customers’, Timothy Binob, the exact date for the demonstration will be announced at a press conference to be held later this week.

Mr. Binob explained that the customers all over the country are expected to take part in the demonstration.

Speaking to Citi News, he also said customers are yet to receive any official communication from the company on what percentage of the total value of gold traded will be refunded to them.

The aggrieved customers have demanded a fifty percent refund within four weeks, but Menzgold says it may be able to pay only a portion of what is being demanded.

“It is a nationwide demonstration, and Tarkwa and Kumasi will all be part. So we are liaising with them and all of them will also come with their buses. We will convey a press conference very soon maybe at the end of this week so we announce the date of the demonstration.”

“We have been promised by the firm and for several times they have not fulfilled their promises. They gave us a four week period to come on out with a percentage they will be paying, but none of the customers have received anything. No customers has received any money; not even a single one.”

‘We may pay in 90-days if you terminate your transaction’ – Menzgold

The company has also said that customers who wish to terminate their investment transaction with them, will receive a full payment of their investment in 90 days if the ongoing misunderstanding with statutory institutions is resolved.

Menzgold made this known in a statement signed by Head of Communications of the company, Nii Amarh Amartefio. The statement was part of an agreement reached with a section of its customers at a meeting held in Accra.

Pastor sues Menzgold over delayed payments

Meanwhile, a customer of Menzgold, has already sued the firm for breach of contract and misrepresentation.

The customer said to be a Reverend Minister is demanding the payment of his accrued interest and GHC 24,000 principal investments which he allegedly deposited with Menzgold on April 20, 2018. Rev. Joseph Appiah Odei in his writ said he deposited 12 pounds of gold estimated at Ghc24,000 for 12 months, and paid a non-refundable commission of Ghc1,200 to Menzgold.

He’s the first aggrieved Menzgold customer to take such an action, although several others have demonstrated and only threatened to sue.

High profile Menzgold customers silent due to stigma – Customers reveal

Members of the group have revealed that some well-known individuals and institutions in the country who are customers of Menzgold are not speaking up due to the fear of stigmatization.

In an interview on Citi TV’s Point of View show with Bernard Avle earlier this month, three bold customers who agreed to share their experiences with the company said they know certain high profile people in society who have their monies locked up with Menzgold but cannot agitate or speak up for fear of being ridiculed and criticized.

One of the aggrieved customers said in the past, some people including a Member of Parliament also branded Menzgold customers as lazy people who did not want to do any hard work.

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, a situation they have vowed to use all means possible to resolve.

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.

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