Kwame Akuffo and Co., lawyers for embattled Menzgold Ghana Limited, have made it clear that they do not have the capacity to carry out payments to the company’s creditors, as stated in a press release issued by the company recently.
A letter from the lawyers on Wednesday, which reacted to the company’s earlier release, stated, “Our attention has been drawn to the press release dated December 18, 2019, by Menzgold Ghana Limited (the client) in respect of the above-mentioned.”
It emphasized, “Paragraph four of the press release is to the effect that Kwame Akuffo and Co. Unlimited (the firm) on behalf of the client has been instructed to make payments to the creditors. We have informed the client that the firm does not have the capacity to carry out the said exercise. The firm is, therefore, unable to accept instructions in that regard. Under the circumstances, we have advised the client to instruct a third-party entity to carry out the instructions in respect of the above-mentioned.”
In the press release issued by Menzgold Ghana Limited earlier, it gave assurance that beginning Friday, December 27, 2019, it would begin paying customers their locked-up funds which have been in arrears over the past three years.
But since it folded up in 2018 due to a suspension order from the Securities and Exchange Commission (SEC), Menzgold Ghana Limited has been going through difficulties with its attempt to refund monies invested by the customers.
On Wednesday, Menzgold Ghana announced that it would disburse the locked-up funds by a payment plan it termed as ‘reverse mechanism’.
“Payments shall be made strictly following a ‘reverse mechanism’ which implies from the last day (month) of our business operations to the very day when our business commenced. Thus from September 12, 2019 to March 18, 2013.
“To this end, we shall start to settle all transactions in September 2019 and those who didn’t access extra values as we proceed in the above described mode and manner.”
The company went on to give an assurance that it was in the process of collecting debts owed the company to buttress its funds to engender payment to customers.
The company emphasised that all claims would be made strictly according to the announced payment schedule.
“Payments start on Friday, December 27, 2019, with funds at hand now as we proceed to recover the debt owed Menzgold overseas, especially in Dubai and Europe, to come to reinforce as payments sessions continue. Claims shall be settled in full and shall be subject to an invitation from our legal team, Kwame Akuffo & Co.”
It further noted, “Unlimited, strictly following the below indicated scheduled hierarchical order, all to be settled within 36 months starting from December 2019. We shall endeavour to commit not more 36 months to settle all claims, as we follow strictly all reverse transactions or contracts as formed, to achieve cordial co-existence and harmony.”