Menzgold Sues BoG And SEC; Makes Good Their Promise To Settle Clients From September 28

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Management of top gold hub, Menzgold Ghana Limited has in a press conference revealed their commitment to settle all matured interests on the investments of their clients through a payment schedule beginning tomorrow, September 28, 2018.

A Director of the firm, Mr. Offei who addressed the press conference, revealed the outfit’s filing of a suit against the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC).

” We have been constrained to do so because we have been left with no other choice. Under the circumstances, we have filed suits to seek a healthy determination of our rights to enable us make progress”, he said.

“In the interim period, we are very much alive to the needs of our customers. It is however important to note that the recent circumstances have dislodged the shape and the projections of the business. To that end, we have set out a payment schedule starting tomorrow to be circulated to all our customers”.

In other to avoid over crowding at the various Menzgold branches, customers are to only visit their branch on the date for their collection as the schedule will be strictly adhered to.

“It is pertinent to note however that the period starting Wednesday 12th September to date while the Gold Vault Market has remained forcefully shut by SEC regrettably shall not attract any form of returns whatsoever, as the business of the gold trade has been and still is dormant”

“Finally by dint of the “shut down” of the gold trade, the firm cannot process any kind of termination on the Gold Vault Market until a healthy restoration is determined by the courts. It is important to note that but for these unwarranted obstructions, Menzgold has had a 100% unblemished record with regards to payment of extra values to traders. In our 5 years of operations, there is not a single case on record of suggestion default payment as a verifiable matter of fact”

Background

Security and Exchange Commission (SEC) a couple of weeks ago ordered Menzgold, with immediate effect, to suspend their operations with the public.

In response, Menzgold adhered to the order by placing a temporal halt on all extra value payments and any new business related to their Gold Vault Market.

According to a Menzgold release, the halt was to take effect from 13th September and was to be in place for 6 days, by which time all pending issues related to the Gold Vault Market Product was expected to have been ironed out.

But there has been a back and forth between the two outfits, with SEC’s deputy Director General Paul Ababio denying in an interview that, his has blocked gold dealership Company, Menzgold, from paying dividend on its gold vault business to customers.

Menzgold was taken aback by SEC’s stance and thus also replied by saying it was impossible to pay the matured interest of the extra value to customers since SEC had directed that they shut the Gold Vault Market.

Meanwhile, this move by Menzgold is expected to set the hearts of its cherished clients at ease, since there were growing concerns regarding the outfit’s ability to meet the 28th September deadline, it promised.

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