Menzgold customers to embark on demo over locked up monies

Aggrieved customers of Menzgold have announced that they will embark on a nationwide demonstration to register their displeasure with the company following its failure to pay them their locked up investments.

The demonstration, according to the Spokesperson of the aggrieved customers, Timothy Binob will be staged at the end of October, this year.

Mr Binob, who was speaking to Accra-based Citi Fm, urged all customers of the company to join 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 out with a percentage they will be paying, but none of the customers has received anything. No customers has received any money; not even a single one,” he said.

Menzgold earlier this month announced that it would only pay the value of gold traded (initial investment) of customers in their gold vault market after January 9,2019.

According to the company, the decision was arrived at after a meeting with some customers from across the country at the Korkdam Hotel, Achimota in Accra.

The company also announced that customers wishing to terminate their investment with the company could also do after the stated date.

It further announced that it would no longer pay extra value [dividend] to customers because of the challenges and difficulties it is facing "with its Bankers arising from instructions and actions of certain government institutions."

Customer sues Menzgold

While others are waiting for a demonstration, one Rev. Joseph Appiah Odei has sued the company for breach of contract and misrepresentation.

Rev Minister sues Menzgold over Gh₡24,000 locked investment

Suspension of trading

Menzgold on Thursday, September 13, 2018, issued a six-day temporary halt of its operations following a directive by the Securities and Exchange Commission (SEC) ordering the company to suspend its trading activities.

Already, the SEC has ordered the company to halt advertising its investment business and desist from creating new contracts with depositors.

The suspension came on the back of investigations conducted by the regulator that found that Menzgold's business, which involves the purchase/deposit of gold from the public and contracts issued with guaranteed returns with clients, is a capital market activity which cannot be conducted without a valid licence issued by the SEC.