General News of Sunday, 23 September 2018
An aggrieved customer of troubled Menzgold Ghana Company Ltd. is threatening to rally a class action suit against the minerals trading company.
According to her, Menzgold has not been transparent about the legality of their operations with the customers.
In an interview with Citi News, the customer, who spoke on grounds of anonymity described the numerous assurances given by the company as deceit.
This is after Menzgold postponed its scheduled reopening to September 28.
Menzgold temporarily halted its gold trading activities on September 13, 2018, following a directive from the Securities and Exchange Commission (SEC).
The company had promised to resume work after six days of closure but has now extended it.
Whilst some customers are protesting against the suspension of the operations of Menzgold, the woman who spoke to Citi News said, “now we are sounding a caution to them that the government has been on them. The next one will be us the clients being on them. If the government wasn’t able to bring them down, we the masses will bring them down,” the customer threatened.
She noted that the best course of legal action would be a class-action suit against the company.
“You speak to the masses, you organize them and institute a class-action against them for breaching their contract so we the masses we give them up to the 28th [September] that they have said right now… if we don’t see any favourable terms from them, the next action will be a class action against Menzgold.”
Apology from Menzgold
Spokesperson of Menzgold, George Quaye apologised for the late notice of postponement of suspension on the company’s gold vault market.
“It is unfortunate that statement did come out later but to ensure that the statement got to everyone, aside just releasing it, we also blasted a bulk SMS to each and every customer,” he told the media.
He also said the “firm is dealing with all state agencies to ensure that these bottlenecks that we are encountering at the moment are all cleared and resolved and that is where the focus is right now.”
SEC orders Menzgold to suspend ‘illegal’ trading
Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by SEC.
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectables from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.
This, the SEC said, is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”