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Court suspends auction of Menzgold’s Amakom properties

The Kumasi Metropolitan Assembly’s Circuit Court has put on hold the auctioning of properties of gold dealership firm, Menzgold Ghana Limited after a claimant challenged its ruling.

The court in December 2018 granted a request by one of the aggrieved customers of the company who was demanding the release his locked up investments.

The court had directed the company to pay GHc 24,802.25 to the plaintiff, Henry Darko or the Amakom and Patasi properties of the firm be sold to defray the cost.

But another claimant has also filed a case to stop the auctioning process.

The claimant, Collins Kwabena Badu, is praying the court to exclude the building which the firm used as its Kumasi office from the auction.

Mr. Badu contended that the building is not part of the properties of Menzgold since it was rented and not sold to the company.

Citi News sources say the court will now request the plaintiff to file his interest in the case to allow the process to continue.

The Kumasi Circuit Court ordered the sale of properties by public auction before 10 am on January 16, 2019.

The court, in its ruling, while instructing the company not to sell or gift out the property, cautioned the general public not to receive the property whether by purchase, gift or any other means.

The company has over the past months faced some other suits over the failure to repay the principal investments of its customers.

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

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