The Coalition of Former Menzgold Customers on Tuesday, June 22, 2021, called on the Speaker of Parliament Alban S. K Bagbin to ask him to help them retrieve their locked-up funds with the now-defunct company.
The leader of the 10-man delegation, Isaac Nyarko, expressed worry about the impact of the closure of Menzgold on customers and their families, adding that the banking sector cleanup did not help matters.
Customers of Menzgold have been unhappy they were not included in a bailout just like the other companies that were licensed by the Securities and Exchange Commission (SEC) and collapsed with a “written letter” because their operations were contrary to their terms of the license.
The Securities and Exchange Commission (SEC) ordered the shutdown of the gold-trading firm across the country on Thursday, 12 September 2019.
It also stopped the company from taking on new investments.
SEC further stopped Menzgold from publishing or broadcasting all adverts related to its activities.
SEC indicated that upon evaluation of the documentations of Menzgold, the company did not have the license to deal in gold trading, citing that its operations breached Act 929 and as well, posed “a threat to unsuspecting and uninformed investors”.
SEC had further warned in a notice on Saturday, 7 September 2019, that if the company failed to comply, the Commission enforces the directive by taking “measures under the law.”
Unable to refund customers’ investment NAM 1 has been dragged to court.
The government says it will not use taxpayers’ money to pay depositors whose investments have been locked up in the now-defunct Menzgold Company Limited.