We are not paying 50% principal to clients - Menzgold

Customers of Menzgold have welcomed a payment plan outlined in a latest ‘fake’ press release and many were thrown into a celebration mood as they wait to cash out their investments.

The release promised investors immediate payment of 50% of their principal investments.

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

Though we cannot confidently call the release a fake one, the gold dealer has said that it’s not coming from the firm.

Customers are very worried about the future of Menzgold and some investors are willing to take even 40% and let go the remainder of their investments.

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.