We are not paying 50% principal to customers – Menzgold

Menzgold not licenced to sell trade gold locally

Menzgold Ghana Limited has rubbished reports that they have outlined a payment plan for customers to cash out 50% of their principal investments.

A press statement went viral on Tuesday that the gold trading firm will be giving customers 50% of their principals – the statement was warmly welcomed as many were thrown into a celebration mood.

Many investors deemed it as good news and some were even happy if they don’t receive anything again aside from the 50% payment.

However, it turned out that said press release is fake as confirmed by the embattled firm.

The company took to their Facebook page to announce that the said release is not coming from them.

Customers are very worried about the future of Menzgold after the company was instructed by the Security and Exchange Commission to halt operations.

Background

MenzGold has filed a suit against the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC) for interfering with its Gold Vault Market operations.

In the suit filed at the High Court, Menzgold is seeking “an order of perpetual injunction to restrain the Bank of Ghana and Securities and Exchange Commission, its officers, servants and agents from interfering with Menzgold’s business activities or further acts of disobedience and non-compliance with the law by publishing any derogatory notices.”

The gold-trading firm is also seeking a declaration that its “business does not fall within the present legislated scope of the Banks and Specialised Deposit -Taking Institutions Act 2016 (Act 930)”.

Additionally, MenzGold wants a declaration its “business activities does not fall within the present legislated scope of the Security Industry Act 2016 (Act 929)”.

The BoG recently threw its weight behind SEC for shutting down Menzgold’s Gold Vault Market operations over certain regulatory infractions, a situation which the legal advisor to MenzGold, Kwame Akuffo, said smacked of unfairness.

In a recent press interaction, the central bank, which in the past issued several warnings to the public against dealing with MenzGold, said it endorses SEC’s move.

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