Menzgold sues BoG, SEC

Embattled gold dealership company, Menzgold, has sued the Securities and Exchange Commission (SEC) and the central bank—Bank of Ghana.
The company in its suit is seeking from the court an order directing the two state institutions to stop interfering in its business.
Menzgold is also asking the court to stop the BoG and the SEC from publishing what it described as “derogatory notices” against its business.
“An order of perpetual injunction to restrain the Bank of Ghana and Securities and Exchange Commission, its officers, servants and agents from interfering with Menzgold’s business activities or further acts of disobedience and non-compliance with law by publishing any derogatory notices.”
Menzgold also wants the two institutions to publish an unqualified retraction and apology for the notices they published against the gold dealership company.
It also wants the court to tell both the central bank and SEC that its gold dealership business does not fall under any of their laws
“A declaration that the plaintiff’s business does not fall within the present legislated scope of the Banks and Specialised Deposit Taking institutions Act 2016 (Act 930). A declaration that the plaintiff’s business does not fall within the present legislated scope of the Security Industry Act, 2016 (Act 929),” the company stated in its writ filed by lawyer Kwame Boafo Akuffo from the Kwame Akuffo & Co., Unlimited law firm.
Menzgold stated that it has decided to litigate the matter at the court because the regulatory bodies have threatened to continue with their action against it “unless restrained by an order of this court.”
It will be recalled that Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.

That, the SEC said, was in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company was, however, cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
Although the company was adamant at first, it subsequently complied with the directive.
Menzgold has also hired an international law firm, Baker & McKenzie LLP, as it prepares for a legal confrontation with the Securities and Exchange Commission over the issue.
In a letter to the SEC and the Minerals Commission sighted by Weekend Today, the London-based legal firm informed the two regulators that it had been contracted by the gold trading company to represent its interests.
It subsequently extended the suspension to September 28, 2018.

 

Story: News DESK

 

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