By Frank Amponsah
The Securities and Exchange Commission has ordered gold trading firm, Menzgold Ghana Limited, to suspend their operations with the public with immediate effect.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.
The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.
The supply of those documents, however, does not clear Menzgold to continue the mentioned aspects of Menzgold’s business.
“That aspect poses a threat to unsuspecting and uninformed investors,” SEC noted.
SEC also ordered that no new contracts of such should be created and all advertisement on same should cease.
It added that failure to comply would force SEC to enforce the directive through alternative means.
Menzgold is, however, free to continue purchasing gold from small-scale miners and exporting same.
MENZGOLD
Meanwhile, The Management of Menzgold Ghana has assured all its cherished customers that neither Menzgold as a business entity nor any of its products has been shut down.
According to Menzgold, gold trades of customers are safe and business is proceeding as usual.
The assurance came on the heels of statement coming from the Securities and Exchange Commission ordering the gold trading firm to suspend their operations with the public with immediate effect.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, the firm does not have the license to trade in gold collectibles from the public.
The statement also claimed that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
However, Menzgold management said it finds it very unfortunate that a letter relating to business discussions between the organization and the Securities and Exchange Commission has found its way to the public.
“Menzgold in the wake of the Bank of Ghana warning to the public to desist from doing business with the organization availed itself to all relevant State Institutions for various consultations and dialogues designed to arrive at a productive and sustainable resolution,” it said.
Management also averred that SEC was one of the organizations with whom they have been hopeful of arriving at a cordial resolution to all matters.
It said: “This needless leak believed to be coming from the Securities and Exchange Commission is, to say the least, in very bad faith and distasteful; as it defeats our confidence in the body and an affront to cooperation.”
The firm however condemned SEC for the development.
Meanwhile, the company said it has referred the matter to their lawyers and believe the right action shall be taken to put matters to rest.
