The future of gold dealing firm, Menzgold remains uncertain following Securities and Exchange Commission’s (SEC) directive, ordering them to shut down operations until they provide certain documents requested. Since the news of the order hit the public, Menzgold has done its best to fight off the SEC, but that did not work as they finally agreed to shut down and cooperate with the commission.
Menzgold which announced that it was shutting down for just 6 days later extended the shutdown period by some 10 extra days, leaving customers worried and frustrated. Talks of an imminent collapse of the company is now on everyone’s lips and considering the direction the whole issue has taken, it may come as a surprise to few people if the company ends up collapsing.
Now here are ten things could or are likely to happen should Menzgold collapse.
Nana Appiah may vanish if he can’t refund all monies received
CEO of Menzgold Nana Appiah Mensah (NAM1) is undoubtedly a very wealthy man but to refund monies to all investors of Menzgold would be a herculean and near-impossible task considering the millions of cedis people have invested in the company with the hope of receiving a cool ten percent dividends every four weeks. So what if NAM1 cannot refund all the monies? The obvious choice is that he may vanish into the thin air and we may never hear from him again. That would not be the first time the CEO of a collapsed financial firm has vanished from the system, as the country has a few examples dating back from the 90s when financial companies like Pyram collapsed.
Shutdown of Zylofon and its Subsidiaries
The end of Menzgold would automatically mean the end of Zylofon and all its subsidiaries. Companies like Zylofon TV, Zylofon FM, Zylofon Cash among others would automatically collapse since they do not generate enough revenue to cater for themselves but rather depend largely on direct funding by Nana Appiah Mensah, with the money from him also directly coming from Menzgold. In fact a quick monitoring of Zylofon TV, one would realize the station hardly run commercials, which is the main source of revenue for media houses. This then means that the station simply cannot survive without Nana Appiah Mensah regularly funding its operations and activities.
Injunction on REIGN Album launch
Should Menzgold collapse, customers would take every possible action that could help them get their money back and that may include putting an injunction on Shatta Wale’sREIGN album and pray the court makes an order for proceeds of the album to be used to defray cost of their investments with Menzgold, knowing how successful the album is likely to be. This could jeorpardise the 13th October album launch date and Shatta Wale can only hope and pray his album is released before the unfortunate happens to his boss’ company should NAM1 fails to arrive at a “useful conclusion” with SEC. Asembi.com would publish detailed article on how the REIGN album may takes years to be launched.
Zylofon Artistes may suffer
All Zylofon Music artistes and signees would suffer the rippling effects of Menzgold’s collapse. The juicy packages such as cars, monies and expensive videos that they shoot could all come to a halt as NAM1 may not be in the position to offer such expensive packages to them again with the collapse of his most important asset, Menzgold. Shatta Wale and Stonebwoy on the other hand, are very unlikely to experience any hardship or suffer the consequences of a collapsed Menzgold since they were already rich before they joined Zylofon Music and continue to boss the music industry with hits, making millions of cedis that would ensure they don’t suffer from the crisis. However, Shatta Wale and Stonebwoy remain acts of Zylofon Music and whoever takes over the company takes over the artistes too. Should the company collapse, they may have to continue their contract under a new boss to help defray Menzgold’s debts, if any.
All NAM1 businesses could be closed down for security reasons
Make no mistake, the fact that people love NAM1 doesn’t mean they cannot resort to extreme measures should Menzgold collapse and their monies be gone for good. Victims may end up storming offices of businesses he owns to vandalize the place, and even steal some expensive equipment to sell and defray their investment cost with Menzgold. This situation could force all NAM1 businesses to close down for security reasons as the life of workers could be at stake while important equipment may also be looted by aggrieved customers.
Election campaign message
In Ghana everything is politics, and every issue is an election campaign message, so would the collapse of Menzgold be. The opposition parties would take advantage of the event to score political points by making the issue a huge election campaign message, where they would tell voters how the ruling New Patriotic Party (NPP) collapsed a Ghanaian-owned business and made citizens lose their millions of investments. Remember the then opposition NPP, in the run up to the 2016 general elections also used DKM as a campaign message and handsomely got rewarded for that by winning almost all the parliamentary seats in the Brong Ahafo region where DKM was most vibrant.
Zylofon Cash and Zylofon View platforms may go offline
If Menzgold collapse, NAM1’s online-based projects Zylofon Cash and Zylofon View may go offline and seize to be functional, largely because the young platforms make no money on their own to sustain operations and depend on NAM1’s continues investment with the hope that someday they will pay off with returns. Should Menzgold collapse today, Zylofon View and Zylofon Cash would be the least of NAM1’s worries as he may have aggrieved customers to deal with, leaving the two platforms to rot away and fade into oblivion.
1000s of Job losses
This would be the most visible effect of Menzgold’s collapse. The company employs thousands of people across several regions and its collapse will mean all these workers have to pack their luggage and go home, unleashing a fresh batch of unemployed citizens into the system. It may even go beyond Menzgold workers as NAM1’s other businesses such as Zylofon FM may suffer financial constraints which could lead to workers being laid off.
NPP would lose votes
Just as how the National Democratic Congress (NDC) lost votes over the DKM meltdown, the NPP would lose votes should Menzgold collapse. Victims, who lose their monies to the firm, will most likely vote against the NPP government in the next general elections if they do not get a refund of their monies from the state. Knowing that would not happen, it is no brainer to predict that the collapse of Menzgold could cost NPP some votes in 2020. Even those who have no savings with Menzgold and wouldn’t be directly affected by the collapse of the firm may choose to vote against NPP as they may feel the government didn’t do enough to protect the investment of people.
Zylofon Arts Fund Beneficiaries will sing Hallelujah
Beneficiaries of the Zylofon Arts Fund would be one of the few group of people who would rejoice should Menzgold go down. Should the firm go down, all other businesses of NAM1 are likely to feel the effect and collapse as well, this would mean beneficiaries of Zylofon Art Fund wouldn’t have to bother themselves with paying back the interest-free loans they got from the fund as the main company Zylofon Media itself could be shut down. Shutting down of Zylofon Media means beneficiaries have no company to pay their loans to as the firm will seize to exist.
We can only hope the impasse between Menzgold and SEC is resolved amicably for the company to resume operations and put the heart of frustrated customers at rest, but should the worse happen and Menzgold go down, its rippling effects would be felt throughout the country, as so many sectors including the media landscape, security and employment sectors would be affected by the collapse of the company.