Three Menzgold customers arrested in Kumasi demo

Three persons have been arrested by the Police in the Ashanti Region over the fiery demonstration by some aggrieved customers of Menzgold Ghana Limited.

Reasons for the arrest of the three is not immediately known, but the Police have prevented the customers from getting into the palace of the Asantehene Otumfuo Osei Tutu II at Manhyia where they wanted to present a letter to remind the Asantehene of their earlier petition to help them recover their locked up cash with Menzgold.

The Menzgold customers had defied an order from the Police not to embark on the demonstration today [Tuesday].

Earlier, the police managed to disperse the about 50 demonstrators from the Amakom office of Menzgold where they burnt vehicle tyres and blocked the road leading to Adum from Amakom, an activity that led to serious traffic congestion in the area and forced motorists to use alternative routes.

The fire service also joined the police to put out the fire and clear the debris to allow for the free flow of traffic.

According to Citi News’ Hafiz Tijani, the Menzgold office at Amakom is currently being manned by armed police officials.

The customers have for the past six months, been demanding the payment of their principal investments after the gold dealership company was instructed by the Securities and Exchange Commission to halt their gold trading operations with the public.

Menzgold’s challenges

In 2018, Over two hundred customers of Menzgold besieged the premises of the company’s head office at Dzorwulu to demand payment of their locked up investments.

On December 19, some 100 retired and active Police Officers at the Kasoa Divisional Police Command in the Central Region also filed a writ at the Accra High Court against the company.

Menzgold was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).

According to the SEC, Menzgold had been dealing in the purchase and deposit of gold collectables from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.

This, the SEC said was in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”

The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”

Despite initial protests, Menzgold complied with the directive. It has however failed to fully pay its numerous aggrieved customers the value on their gold deposits as well as their entire investments.

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By: Jonas Nyabor | citinewsroom.com