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Opinions of Thursday, 27 September 2018

Columnist: Benjamin Kesse

Menzgold Saga: September 28, mass jubilation or ‘mass burial’

Menzgold is a gold trading firm Menzgold is a gold trading firm

September 28, 2018, the date promised by Menzgold for the reopening of its offices for business is fast approaching and most Ghanaians, especially Menzgold customers are anxiously looking forward to the day to know their fate.

The anxious wait for the 28th September stems from the fact that Menzgold initially promised to reopen its offices for business on 20th September after shutting down on September 12, following directives from the Securities and Exchange Commission (SEC) to halt its gold taking deposit activities.

Menzgold however extended the shutdown date to 28th September after failing to arrive at a “useful conclusion” with the SEC.

The extended date which was given will be due in some two days’ time and there is only two possible outcomes on the day; either a mass jubilation or ‘mass burial’.

Come 28th September, should Menzgold stay true to its words and reopen for business, customers are going to be in a jubilant mode after having their money locked up at the firm for more than two weeks without any interest. On the other hand, if Menzgold as feared by most people fail to resume operations, it’s going to be a big issue in the country.

Just as NDC’s George Opare Addo said, anything other than a reopening of the company could result in a mass burial as the heart ache would be too much for some to take considering the huge sums of money they have invested in Menzgold.

For now, the whole of Ghana is anxiously looking forward to this Friday, September 28, to see what happens with regards to the reopening of Menzgold. Perhaps a new historical date in the history of Ghana is on the verge of being inked into the archives of this country, but will that history be a historical day of mass jubilation or mass burial? Only time can and would tell.

What are the chances?

Based on SEC’s stand and Menzgold’s latest press release, the chances of the firm resuming business on 28th September is negligible. SEC has made it clear that there hasn’t been any progress with their meeting with Menzgold. SEC only ordered Menzgold to stop admitting new clients onto their Gold Vault Market until the suspension is lifted.

Menzgold has also stated that they cannot pay dividends while on suspension. This make it evident that the firm is likely to ‘buy more time’ to deal with SEC.

Since 28th September is just two days away, it may not be possible for SEC to lift the suspension immediately if Menzgold meets the requirements tonight or tomorrow.