Menzgold to meet customers to finalize mode of payment

Business News of Friday, 26 October 2018

Source: citinewsroom.com

2018-10-26

Menzgold has not been able to fully pay matured returns to its investors

Gold dealership company, Menzgold Ghana Limited, is set to hold a meeting on Sunday, 28th October, 2018, to finalize the structure of principal payments for their customers.

The meeting follows the company’s instruction to customers willing to terminate their contract to provide their details.

The details will be used by the company to ascertain its capacity to pay the customers within three months.

Chairman of the Coalition of Aggrieved Customers of Menzgold, Timothy Binob, told Citi News the customers would not accept any initial payment below 40 percent of their principal investments.

“I will expect that after that meeting, the management should be able to come out to announce the newly agreed percentage. At the first meeting held with them, it was proposed that they pay us 50 percent, but they came out with a suggestion that, before they can agree to that 50 percent, they would have to check on their finances. We the customers are still insisting on the 50 percent and even if the need arise, it shouldn’t be more than 40 percent,” he said.

Already, some customers have threatened a nationwide demonstration by the end of this month.

Background

Menzgold has not been able to fully pay matured returns to its investors since the Security and Exchanges Commission (SEC) ordered it to suspend only its gold vault operations.

But the SEC did not agree with Menzgold’s position, saying its action did not stop them from paying customers returns on existing investments.

The company came up with a payment schedule to pay its clients, but the said payments have been postponed several 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.

On 11th October, a customer sued the firm for breach of contract and misrepresentation.

The customer, said to be a Reverend Minister demanded 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 others have threatened to sue, they have not.

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