Why we can't pay dividends - Menzgold

BY: Zadok K. Gyesi

The management of Menzgold says they are unable to generate any revenue to pay their customers due to the orders from the Securities and Exchange Commission (SEC) to halt its trading activities.

In a statement, Menzgold said, "Any act, order or instruction therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatever out of which extra values are charged and paid to those entitled."

The statement further said, "Menzgold Ghana is still committed to ensuring that business operations return to normalcy as soon as possible as the firm is deeply saddened by the social and economic inconveniences this decision and directive of the SEC has caused our customers and the organisation."

The management, however, promised all their customers to remain calm as their investments are safe with the organisation.

Menzgold customers

Some aggrieved customers of Menzgold Ghana Limited have threatened to take legal action against the company to recover their investments if it fails to resume operations after its September 28 deadline.

The investments of the aggrieved customers have been locked up following the suspension of the company’s gold vault market services.

The threat by some of the customers followed a decision by the company to extend the suspension of its gold vault market services for the second time, in the wake of the controversy between it and the Securities and Exchange Commission (SEC).

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Although the management of Menzgold was initially defiant in complying with the SEC’s order to shut down operations because the company was not licensed to do so, it announced on Wednesday, September 12 that it had placed a temporary halt on its operations.

Read also: Menzgold customers issue threats as investments lock up

The temporary suspension expired on Tuesday, September 18 and the company was supposed to resume operations on Wednesday, September 19, 2018.

However, in another statement signed by the Head of Communications, Mr George Quaye, and issued in Accra last Tuesday, the company said it had extended the suspension of its services to the public until Friday, September 28, 2018.

Below is the statement:

Menzgold statement