Menzgold to pay customers from December 27 using ‘reverse mechanism’

• Posted on December 19, 2019
• by Nana Kwesi Coomson
• Comment

Troubled gold dealership firm, Menzgold Ghana Limited says it will from Friday, December 27, 2019, begin paying customers their locked up funds which have been in arrears for the past three years.

The company since its collapse in 2018 following a suspension order from the Securities and Exchange Commission (SEC) has been struggling to refund monies invested by the customers.

In a statement issued on Wednesday, the company explained what it termed as a ‘reverse mechanism’ as the payment plan and formula to be used for the monies to be disbursed.

“Payments shall be made strictly following a ‘reverse mechanism’ which implies from the last day (month) of our business operations to the very day when our business commenced. Thus from 12th September 2019 to 18th March 2013. To this end, we shall start to settle all transactions in September 2019 and those who didn’t access extra values as we proceed in the first above described mode and manner.”

Management also assured that it is in the process of retrieving debts owed the company to shore up funds in other to pay its customers.

It said all claims will be paid strictly according to the payment schedule and urged customers to follow through with the directive to ensure that they are settled in a chaos-free manner.

“Payments start on Friday 27th December 2019 with funds at hand now as we proceed to recover the debt owed Menzgold overseas, especially in Dubai and Europe to come to reinforce as payments sessions continue.
Claims shall be settled in full and shall be subject to an invitation from our legal team; Kwame Akuffo & Co.”

“Unlimited, strictly following the below indicated scheduled hierarchical order, all to be settled within 36 months starting from December 2019. We shall endeavor to commit not more than thirty-six (36) months to settle all claims, as we follow strictly all reverse all transactions or contracts as formed, to achieve cordial co-existence and harmony.”

Find full statement here:

 Menzgold and customers on payment modalities

Earlier, Menzgold asked the leadership of groups formed by its customers to solicit inputs from the disgruntled members as it works on the modalities to pay back locked up investments.

It said the move was part of “their ongoing broad consultation, with the CEO together with management, the general public, government, and internal and external stakeholders.”

At the time, the aggrieved customers were disappointed at the company’s decision to announce plans to publish a payment schedule without their views.

They also vowed to kick against any payment plan that fails to promise a 100% retrieval of their locked up investments.

Validation 

A validation exercise was recently undertaken by the company as part of an internal auditing process to pave the way for payment of claims.

Some customers had mounted pressure on the company to announce a detailed payment plan.

According to them, that was the only way they can repose confidence in the company to refund their locked up investments.

Meanwhile, beleaguered Chief Executive Officer (CEO) of Menzgold Nana Appiah Mensah is standing trial for defrauding his customers of about GHc1.68 billion.

According to the charge sheet, the money was from about 16,000 people who invested a total of GHc1,680,920,000 in the company.

The charge sheet indicates that Mr. Appiah Mensah’s two companies — Brew Marketing Consult and Menzgold Ghana Limited; represented by him, have also been charged with defrauding by false pretense, contrary to sections 20 (1) and 13 (1) of the Criminal Offences Act, 1960 (Act 29).

-Citi