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General News of Saturday, 30 May 2020


Payboy ends contract with Menzgold over arrest of officials

Payboy says it has opted out of its Payment Facilitation Agreement with Menzgold Payboy says it has opted out of its Payment Facilitation Agreement with Menzgold

Following the arrest of some of its officials on Wednesday, May 27, 2020, Payboy Company Limited says it has terminated its agreement with Menzgold to facilitate the payment of its customers.

In a statement, the management of Payboy said "We have indicated to Menzgold Ghana Company Limited our decision to opt out of the 'Payment Facilitation Agreement' we signed on the 7th February, 2020. Amongst others, we indicated that we would NOT admit any Menzgold Customer at our premises on the basis of negotiating and facilitating mutually acceptable payment mode or manner for the indebted client."

On Friday, the Economic and Organised Crime Unit announced it had arrested some officials of Payboy Company Limited indicating that the company was operating without the requisite licenses from either the Bank of Ghana or the Securities and Exchanges Commission.

Menzgold appointed Payboy as a third-party entity to negotiate the settlement with the thousands of customers of the failed gold dealership firm.

Menzgold said in a statement at the time that the company will negotiate and facilitate the payment of the investment of its customers whose investments are still locked up.

The Bank of Ghana collaborated with other regulatory agencies to pull the brakes on the activities of Menzgold some two years ago over regulatory issues, bringing to an end what many say was a Ponzi scheme.

It is estimated that the failed gold dealership firm owes up to $42 million in accrued investments and principals.

Read the full statement by Payboy Company Limited below.

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