Menzgold finally pays customers

After a somewhat ‘protracted’ disagreement between embattled gold collectibles dealership firm, Menzgold Ghana Limited and its customers over the percentage to be paid to them on their principals, the company has reportedly started paying the initial percentage to its customers.

It would be recalled that customers of Menzgold Ghana Limited had initially rejected a proposed 15 percent payment on their principals.

The company’s woes started on September 7, 2018, after the Securities and Exchange Commission (SEC) directed it to suspend its gold trading operations.

The directive, according to SEC, was based on the ‘fact’ that Menzgold had been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns to clients without a valid licence from the Commission.

The move, SEC explained, was in contravention of “Section 109 of Act 929 with consequences under Section 2016 (I) of the same Act.”

The company was, however, allowed to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”

The directive caused panic among Menzgold Ghana Limited’s numerous clients, who consequently besieged the offices to demand their investments.

However, for several days, management of Menzgold failed to convince its clients to accept a proposed 15 percent initial payment on their principals.

But reports reaching DAILY GUIDE indicate that ‘normalcy’ has returned to Menzgold, with the company said to have completely paid off about 30 percent of its clients who wanted to terminate their contracts.

The payment process, according sources close to Menzgold, has been smooth so far.

Reports said that there are plans to pay the rest of the clients said to have accepted the “agreed percentages.”

Menzgold Ghana Limited promised to pay its clients in October 2018 during a stakeholders’ meeting.

DAILY GUIDE gathered that the majority of Menzgold customers kept faith with the firm and opted not to terminate their contracts.

Menzgold gave its customers the option to cancel their contracts or continue to do business with it during the company’s stand-off with government over licensing.

A source close to Menzgold explained that the percentage payment schedules have been segmented into 100 percent, 50 percent, 30 percent, 20 percent and 15 percent.

At East Legon Branch, two customers, whose gold investments were worth GH¢6,000 and GH¢10,000 reportedly received 100 percent and 50 percent respectively.

Payment Mode

A customer due for payment is accordingly sent an SMS before he or she goes to the branch for validation and payment, this paper has learnt.

“All customers who have received their direct SMS are expected to visit their various branches for payment. Every branch has been authorized to pay its customers who have received direct SMS ONLY according to the agreed schedule,” a source revealed.

All customers are expected to be paid by the end of November.