Menzgold Ghana Limited has said it has stopped the payment of extra values to its clients forthwith, due to restrictions and difficulties it is facing with its bankers, arising from the instructions and actions of certain government institutions.
The embattled company said knowing that the principal concerns of its customers is for the return of their primary value of gold traded with the company, it has agreed to pay and return to every customer the full value of gold traded, in 90 days, commencing from Tuesday, 9 October 2018.
This comes after Menzgold postponed payments of returns on investments made by clients on three different occasions.
In its latest statement, Menzgold said all payments will be made via direct transfer into the accounts of its customers to avoid the rush and overcrowding at its various branches as well as to save time and avoid causing its clients any inconvenience.
Menzgold is battling the Securities and Exchange Commission (SEC) over its operations. The company has dragged SEC and the Bank of Ghana to court to stay away from its business, but the state agencies insist Menzgold does not have the licence to conduct business in the manner they do by paying the dividend to clients.
Below is the full statement from Menzgold:
OFFICIAL PRESS RELEASE
The management of Menzgold Ghana limited on Sunday 7th October met with a cross section of its customers from across the country at KORKDAM HOTEL, Achimota in Accra, from 3 pm to 7 pm. The objective of the meeting was to engage with and update our Customers on the following:
a. The status of affairs of the company following the September 12th closure order from the Securities and Exchange Commission (SEC);
b. 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;
c. The allegations and perceptions in certain segments of the public that Menzgold Ghana was a Ponzi scheme;
d. Challenges arising out of the rush by Customers for payments and non-adherence to our proposed schedule;
e. Ongoing efforts to engage with relevant Government authorities for an understanding of our business model and permanent resolution of any concerns and misconceptions that the SEC/BOG and EOCO may have concerning our operation. 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.
1. COMMUNICATIONS
a. 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 letterhead. This is to enable Customers to differentiate from the fake press releases purported to be coming from Menzgold and our official releases.
b. Each Menzgold branch will have a special Customer Relation Officers desk that will be available within the hours of 8:00 am to 5:00 pm to receive and address concerns from any customers.
c. 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.
2. PAYMENTS
a. 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 values forthwith.
b. Menzgold Ghana limited noting that the principal concern 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.
c. Customers recommended that to alleviate their financial stress and inconveniences resulting from the intervention and decisions of the Securities and Exchange Commission SEC to shut down the business of Gold Collectibles, Menzgold Ghana should consider paying 50% (fifty) per cent of the total value of the gold traded to all customers in four weeks.
d. 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
e.
f. 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
g. 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 rest assured, of their full payment in ninety (90) days as stipulated in paragraph (2b) supra.
3. 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 a trusted brand and an indigenous company, which for five years of trading in Ghana and in the international gold market has built
Signed
NII AMARH AMARTEIFIO
Head of Communications
MENZGOLD GHANA LIMITED