Menzgold Puts $250 million Into Mining
EMBATTLED GOLD dealership firm, Menzgold Ghana Limited, has signaled its intention to venture into gold exploration and exploitation beginning from the first quarter of 2019, with a projected capital outlay of $250 million.
Chief Executive Officer (CEO) of Menzgold Ghana Limited, Nana Appiah Mensah, made the announcement on Monday on Zylofon radio, in what can best be described as showing off the financial strength of Menzgold to withstand the current regulatory pressures it is facing.
He stated: “We would invest $250m in Menzgold for exploration & exploitation in the first quarter of 2019.”
Menzgold Ghana has since September 2018 come under severe regulatory scrutiny for dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients without a valid license from the Securities Exchange Commission (SEC) as required by law.
It was subsequently compelled by SEC to suspend its gold trading operations with the public and as the matter remains unresolved, its CEO is looking at a bigger picture of exploiting the same metal which it has been suspended from trading in.
This comes at a time when Menzgold despite the regulatory pressures has gone ahead to launch an online gold trading platform on November 5, this year, with its CEO in the said broadcast urging that “I recommend the online gold market to all customers. Kindly migrate now.”
It remains to be seen whether government will grant a mining license to a company it deems to be operating ‘illegally’ as far as collectibles business is concerned.
Customers have however been agitating for the repayment of their investments with the firm and a 15 per cent repayment proposal put forward by management of the firm recently was rejected by customers and investors who according to Daily Guide’s sources were demanding for either the full settlement of their principals or at least 20 to 25 per cent advance payment.
Menzgold later issued a statement announcing that customers, who wish to terminate their contracts with the firm, will from November 9, 2018, be paid the same 15 per cent that was initially rejected.
Customers of Menzgold are apparently afraid to continue their business transactions with the company following its ‘impasse’ firstly with Bank of Ghana (BoG) and subsequently with SEC.
Obviously cognizant that customers are harbouring fears in their dealings with the firm, Mr. Appiah Mensah said “it is very safe and secure to do business with Menzgold. Menzgold is your trusted gold hub.”
In assuring the customers to keep doing business with the company, he stressed that “no customer would lose a gram of gold or a cedi. Everyone would be adequately settled.”
His promise of ‘adequate’ settlement is in spite of the company’s seeming inability to meet the repayment proposals put forward by customers.
Menzgold operations, according to SEC, was in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
Earlier, Daily Guide’s sources disclosed that the company was planning to invest a total of $1 million monthly to “protect the Menzgold brand.”
Mr. Appiah Mensah himself has subtly confirmed what Daily Guide’s sources have indicated, as he said emphatically “Menzgold would in 2019 commit US$10million in corporate social responsibility, media & brand enhancement programmes.”
He added that “we would get Zylofon films to build 5 more ultra-modern theatres in the regions in partnership with the Ministry of Tourism, Arts and Culture in 2019.”