Business News of Wednesday, 31 October 2018
Twelve dissatisfied clients of Menzgold, led by Mr Lewis Pendragon, have threatened to sue the gold-trading firm within seven days if it fails to pay them, in full and in cash, the principal value of gold which they purchased from Brew Marketing and gave to Menzgold to trade.
A letter from their lawyers S&S Legal, to the management of Menzgold, said: “Our clients have instructed us that they entered into a gold trading agreement (hereinafter refer to as “the agreement”) with Menzgold Ghana Limited (hereinafter referred to as “Menzgold”).
“By the said agreement, Menzgold stated that it will trade in the gold purchased by our clients from Brew Marketing consult (hereinafter referred to as “brew marketing”) upon the instructions of Menzgold.
“Again, by the said agreement, the said trade was for fixed periods during which periods Menzgold stated that it will pay monthly returns (or extra value) to our clients and at the end of which periods Menzgold stated that it will liquidate the said gold purchased by our clients for cash and pay the said cash to our clients under our clients express instructions.
“Our clients instruct us, as a direct result of the breaches by Menzgold of the aforesaid agreement, our clients have suffered and continue to suffer immense financial loss and hardship caused to our clients and their families.”
The letter said those clients among the 12 who have not yet terminated their agreement “have instructed us to notify you and we hereby do that, they immediately terminate their aforesaid agreement with Menzgold”.
The angry clients are demanding their principal in full and in cash from Menzgold, all outstanding extra value as well as commissions paid for the said gold trade till the date of the termination of their contract.
According to them, should Menzgold “fail to comply with our clients’ demands within seven days from the date of this letter, we have our clients’ firm and irrevocable instructions to proceed against you appropriately without further notice to you or without prejudice to any other or further reliefs that our clients may seek against you.”
Menzgold has been unable to pay its clients their monthly extra values for some months now after the Securities and Exchange Commission and the Bank of Ghana served notice that gold dealership firm had no licence to take deposits.
The embattled company recently said it will start paying each of its clients, 15 per cent of their principal investments from 9 November 2018, but the 12 aggrieved customers say they want the full amount paid to them within the 7-day ultimatum.