Menzgold commences payment to clients

Menzgold has commenced the initial percentage payment of customers who have willingly decided to terminate their contract with the gold dealership firm.

About 30 per cent of the clients seeking to terminate their contracts have been paid off, while there are arrangements to sort out the remaining according to the agreed percentages.

“The action is in fulfilment of the promise the company made to its customers last month following a stakeholders’ meeting with clients of the company. The vast majority of Menzgold customers opted not to terminate their contracts with the company as they have kept faith with the firm, thanks to its long-standing positive record,” a statement issued by the firm said.

Customers

Menzgold gave its customers the option to cancel their contracts or continue to trade after the company’s stand-off with the government over licensing.

Visits to the various branches across the country showed that most of the customers had received their payments while the rest would receive theirs per the agreed percentages.

The statement explained that the percentage payment schedules had been grouped into 100, 50, 30, 20 and 15 percentage points.

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Offices

At the East Legon branch, two customers whose gold investments were worth GH¢6,000 and GH¢10,000 received 100 and 50 per cent, respectively.

The branch manager said almost 30 customers had been paid their monies as of the time officials visited the premises.

The Head Office at Dzorwulu was very busy at the time the team got there and the branch manager revealed that almost 600 customers had been paid since November 9 when the payment started.

According to him, most customers with principals ranging from GH¢4000 to GH¢50,000 had received their initial 15 per cent payment.

SMS

The statement explained that a customer due for payment was sent an SMS before he or she went to the branch for validation and payment.

All customers who have received their direct SMS are expected to visit their various branches for payment. Every branch has been authorised to pay its customers who have received direct SMS only according to the agreed schedule,” it said.

Payment, the statement said, would be made to all customers till the end of November.

The Securities and Exchange Commission (SEC), on September 7 2018, ordered Menzgold, to suspend its operations with the public with immediate effect, which affected the operations of the company after five years of business record.

Government

The action by the SEC sparked panic withdrawals among some customers following the SEC’s claim that the firm did not have the licence to trade in gold collectibles.

Menzgold insisted that it was duly licensed to operate its unique investment and filed a suit against the Bank of Ghana and SEC at an Accra High Court over the suspension of its operations.

The company is seeking a declaration that the order by the SEC constitutes an abuse of its discretionary powers and “is arbitrary, capricious and contrary to Articles 23 and 296 of the 1992 Constitution.

The company, although is in court, agreed to pay all customers who sought to terminate their gold trading with the company.