Digital payment firm Payboy Company Limited has abrogated its agreement with Menzgold Ghana Limited, a few days after the arrest of some of its officials by the Economic and Organised Crime Office (EOCO).
An emergency management meeting held on Friday, May 29 came to the decision, and not allow any Menzgold customer entry to its premises “on the basis of negotiating and facilitating mutually acceptable payment mode or manner for the indebted client”.
Payboy on Friday, February 7 signed the Payment Facilitation Company with Menzgold to facilitate the reimbursement of aggrieved customers whose funds were locked up following the suspension of the gold-investment firm from operating and the subsequent arrest of Chief Executive Officer Nana Appiah Mensah.
By the agreement, Payboy entered into contracts with some Menzgold customers to have them paid.
But after the arrest on Wednesday, May 27, Payboy says it will no longer continue the agreement with Menzgold.
“However, we will continue to impress on Menzgold to continue making payments to the clients that we have already contracted with,” a release signed by management said.
Before then, EOCO had advised the public from engaging whatsoever with the firm as initial investigations revealed that it was operating without the requisite licenses from either Bank of Ghana or the Securities and Exchange Commission (SEC).
Payboy stressed that it made it clear to EOCO in a written statement by the arrested officials, who were later granted bail, that it is “not an actual electronic payment service provider or an electronic money issuer, based on the fact that our company do not own or operates a digital or electronic payment service infrastructure yet”.
The firm expressed its preparedness to cooperate with EOCO in investigations.
“Our offices are opened,” it told its customers.