Menzgold customers can terminate contract after Jan 9

Customers of Menzgold Ghana Limited who wish to terminate their investment with the company can do so after January 9, 2019, the company has announced.

It is only then that the company will pay them the value of their gold traded [initial investment] in the gold vault market. 

Meanwhile, the company has said it will 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."

In a press statement signed and issued by Nii Amarh Amarteifio, Head of Communications, the company said it has noted that the principal concerns of its customers were for the return of their primary value of gold traded with the company.

It has therefore agreed and "proposes to pay and return to every customer the full value of gold traded, in ninety days (90), commencing from Tuesday, 9th October 2018."

The statement explained however that, customers who wish to continue trading with the company after an amicable resolution with the statutory institutions has been reached can do so.

“Should Menzgold succeed in reaching an amicable resolution with the authorities, customers wishing to continue trading with Menzgold are free to exercise the option of continuing to trade with us.

"Similarly customers wishing to terminate their business with Menzgold are free to do so and should be rest assured of their full payment in 90-days as stipulated,” the statement said.

The decision, according to Menzgold, was reached after a meeting with customers from across the country on Sunday at Korkdam Hotel at Achimota in Accra.

Below is the full statement issued on Monday October 8, 2018

The management of Menzgold Ghana limited on Sunday 7 October met with a cross section of its customers from across the country at KORKDAM HOTEL, Achimota in Accra, from 3pm to 7pm. The objective of the meeting was to engage with and update our Customers on the following:

The status of affairs of the company following the September 12th closure order from the Security And Exchange Commission (SEC);

Challenges that have arisen following the decision of the company to schedule and commence the payment of extra value to all customers starting from the 5th of August to 12th of September 2018;

The allegations and perceptions in certain segments of the public that Menzgold Ghana was a Ponzi scheme;

Challenges arising out of the rush by Customers for payments and non-adherence to our proposed schedule;

Ongoing efforts to engage with relevant Government authorities for an operation understanding or our business model and permanent resolution of any concerns
and misconceptions that the SEC/BOG and EOCO may have concerning our

After very frank, vibrant, sometimes heated but very fruitful discussions, and the general consensus arrived at the meeting, the Management of Menzgold wishes to inform its cherished customers of the following.

In response, Menzgold noted that it may not be possible to pay all customers 50% of the total value of gold traded, as suggested above.

However, the Board has directed Management to assess the Company's potential cash flow and to determine the exact percentage that can be realistically honoured by the Company to all customers in four (4) weeks.

The percentage to be paid will be officially communicated in a press release and by direct communication with each customer.

Also all payments will be made via direct transfers into the accounts of ALL Customers. This is to avoid the rush and overcrowding at the various Branches of the Company, save time, travel and avoid any inconvenience to our Customers.

In the meantime, Menzgold will continue to assiduously engage with the relevant authorities to reach an amicable resolution and address any legitimate concerns of Government, in the coming weeks. Hopefully, this will enable Menzgold continue with its business of trading in gold collectibles without prejudice to Menzgold's pending suit before the courts of law.

Should Menzgold succeed in reaching an amicable resolution with the authorities, customers wishing to continue trading with Menzgold are free to exercise the option of continuing to trade with us. Similarly customers wishing to terminate their business with Menzgold are also free to do so and should be rest assured, of their full payment in ninety (90) days as stipulated in paragraph (2b) supra.

COMMUNICATIONS

All statements and communications from Menzgold henceforth, will have the signature of the Head of Communications and will always be on the company's official letter head. This is to enable Customers differentiate from the fake press releases purported to be coming from Menzgold and our official releases

Each Menzgold branch will have a special Customers Relation Officers desk that will be available within the hours of 8:00am to 5:00pm to receive and address concerns from any customers. In addition, the Communication Directorate will communicate directly with all customers via email and SMS on any press releases, updates and information relating to the company.

PAYMENTS

Menzgold Ghana explained that it has challenges with its prompt payment of extra value due to restrictions and difficulties it is facing with its Bankers arising from instructions and actions of certain government institutions. Consequently, Menzgold proposes and will stop payment of extra value forthwith.

Menzgold Ghana limited noting that the principal concerns of its Customers is for the return of their primary value of gold traded with the company, has agreed and proposes to pay and return to every Customer the full value of gold traded, in ninety days (90), commencing from Tuesday, 9th October 2018.

Customers recommended that to alleviate their financial stress and Inconveniences resulting from the intervention and decisions of the Security and Exchange Commission SEC to shut down the business of Gold Collectibles, Menzgold Ghana should consider paying 50% (fifty) percent of the total value of the gold traded to all customers in 4weeks.

IN CONCLUSION

Management wishes to thank our valued Customers of their patience understanding and continued loyalty to the Company in the face of an unprecedented and unjustifiable assault and interference in our business, which has cost colossal financial losses to our Company, and more importantly to the tens of thousands of our cherished Customers and the millions of their dependents.

We reassure all Customers of our capacity and willingness to reimburse them for the value of their primary gold traded, in the worst case scenario. We affirm that no one will lose a CEDI. This is our commitment to our Customers as trusted brand and an indigenous company, which for five years of trading in Ghana and in the international gold market has built an enviable reputation and has never ever failed to meet its payment obligations to its cherished Customers.