Menzgold succumbs to SEC pressure

Management of Menzgold yesterday announced that it had temporarily halted its collectables and any new business related to its gold vault market with immediate effect.

According to the company, the halt of what is also called extra value payments took effect from Thursday, September 13, 2018 and will be in place for six days, “by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out.”

The company was hopeful the halt would not go beyond September 19, 2018.

“This decision, though very unfavourable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state,” the press release stated.

The Securities and Exchange Commission (SEC) on Wednesday, September 12, 2018 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 had thoroughly investigated the activities of Menzgold and had found that, the Nana Appiah Mensah-owned firm did 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 involved purchase and deposit of gold collectibles and guaranteed returns was a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.

The statement added that subsequent requests had been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the

operations of the firm.

 

 

Story: Today CORRESPONDENT

 

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