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Pastor sues Menzgold over delayed payments

A customer of troubled gold dealership firm, Menzgold, has sued the firm for breach of contract and misrepresentation.

The customer said to be a Reverend Minister is demanding the payment of his accrued interest and GHC 24,000 principal investments which he allegedly deposited with Menzgold on April 20, 2018.

Rev. Joseph Appiah Odei in his writ said he deposited 12 pounds of gold estimated at Ghc24,000 for 12 months, and paid a non-refundable commission of Ghc1,200 to Menzgold.

He’s the first aggrived Menzgold customer to take such an action, although several others have demonstrated and only threatened to sue.

Aggrieved customers give Menzgold 4-week ultimatum to pay 50% returns

Meanwhile, a group calling itself ‘Aggrieved Customers of Menzgold, has given the company a four-week ultimatum to pay 50% principal investments of all customers.

The group made this known at a press conference to drum home their demands following the refusal of the company to honor contract obligations of paying them their investment returns.

Rev. Odei in his writ wants his investments recovered with interests.

Background

Menzgold has not been able to pay matured returns to its investors since the Security and Exchanges Commission (SEC) ordered it to suspend only its gold vault operations.
The company came up with a payment schedule to pay its clients, but the said payments have been postponed several times in the last few weeks.

The delayed payments continue to stir up anger among Menzgold customers, as they have vowed to use every means possible to retrieve their investments.

‘We may pay in 90-days if you terminate your transaction’ – Menzgold

Menzgold had earlier indicated in a statement that customers who wish to terminate their investment transaction with the company will receive a full payment of their investment in 90 days if the ongoing misunderstanding with statutory institutions is resolved.

“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 be rest assured of their full payment in 90-days as stipulated…” the statement said.

Menzgold further indicated in the statement that “it may not be possible to pay all customers 50% of the total value of gold traded” as suggested.

It was however quick to add that the company’s board has directed management to “assess the company’s potential cash flow and determine the exact percentage that can be realistically honoured by the company to all customers in four (4) weeks.”

The company said the percentage to be paid these customers will subsequently be officially communicated in a press release and by direct communication with each customer.

We can’t pay dividends due to SEC’s action – Menzgold

Menzgold had earlier said it was unable to pay its customers matured dividends on their gold investments due to the action that taken against it by the SEC.

But the SEC did not agree with Menzgold’s position, saying its action did not stop them from paying customers returns on existing investments.

Meanwhile, the SEC has indicated that it is yet to receive adequate information from Menzgold after it ordered the suspension of its gold trading business.

Menzgold has sued the Securities and Exchange Commission (SEC) and the Bank of Ghana.

The company in its suit is seeking from the court an order directing the two institutions to stop interfering in its business.

They are also asking the court to stop the Bank of Ghana and the SEC from publishing what they have described as “derogatory notices” against their business.

‘We’ll settle you completely, be patient – Menzgold Boss

The Chief Executive of the company, Nana Appiah, had a few days ago assured that they were preparing to release all locked up cash.

In a late night message on Twitter, however, Nana Appiah urged his clients to exercise some restraint for the protection of his business.

By: Hanson Agyemang/citinewsroom/Ghana

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