Beleaguered investment and minerals trading institution Menzgold is in more trouble, as some of its customers have threatened to resort to the courts to ensure that they receive their monies invested with the institution.
A cross-section of customers The Chronicle spoke to are threatening to sue the company for their investments, since it has not been forthwith with them in relation to access to their funds.
Some argued that investment transactions border on transparency, and that Menzgold has not been open to its clients enough on the legal status of their dealings.
The customers are complaining about their inability to access their investment funds, contrary to the terms of their transaction.
Meanwhile, Menzgold has refuted any deliberate wrongdoing aimed at depriving its customers of their funds, adding that whatever is happening is in compliance of the Securities and Exchange Commission's (SEC) directive for the company to halt operations.
Speaking to The Chronicle, George Quaye, Public Relations Officer of the institution, indicated that the directive by the SEC was for the company to temporarily halt operations.
He added that should the company go ahead to honour withdrawals of customers' investments, it would amount to a breach of the directive, since withdrawals are part of the operations of the company.
On whether there has not been close customer interaction on current happenings and whether they have been transparent to their customers, he said the company has been in constant touch with its customers on current happenings in relation to the impasse.
He added that they reach their customers through every means available, including SMS and telephone calls.
Customers of the investment company, however, think otherwise, branding the assertions of the company as deceitful.
Menzgold postponed its scheduled reopening to September 28th, 2018 to help it reach an amicable conclusion to its engagements with the SEC, after announcing a halt of its collectables and new gold vault market dealings on September 13th, 2018.
The statement announcing the postponement said: “Following our correspondence with the Securities and Exchange Commission (SEC), we regret to advise that the Gold Vault Market product services will continue to be suspended until the 28th September, 2018, to enable us reach a useful conclusion with the Securities and Exchange Commission (SEC).”
Menzgold had earlier promised to resume operations after six days of the suspension. Customers, therefore, see the move as deceitful, hence their action.
One of the customers said: “We are warning them that we will be on them. If the government wasn't able to bring them down, we the masses will bring them down,” proposing class legal action as their resort.
The customers vowed to organise themselves and institute class action against the company for breach of contract if they do not see any favourable terms by the 28th date the company gave them.
It would be recalled that the Securities and Exchange Commission (SEC) directed that Menzgold suspend operations due to the fact that it was dealing in the purchase and deposit of gold collectables from the public and issuing contracts with guaranteed returns to clients, even though it was not having a valid license from the Commission.
According to SEC, the act by the company is in contravention of section 109 of Act 929, with stipulated consequences under section 2016 (I) of the same Act, though the company was cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”