Deputy Minister of Finance, Mr Charles Adu Boahen, has hinted that the gold dealership company, Menzgold Ghana Limited, will not be in business again in Ghana.
According to the deputy minister, after several cautions from the Bank of Ghana (BoG) and the Security and Exchange Commission, Menzgold has not been able to produce any legitimate license to the regulators, thereby making their activities in the financial sector illegal.
The Securities and Exchange Commission few months ago wrote to Menzgold to shut down all investment trading in gold.
A September 3, 2018 letter signed by Deputy Director General, Paul Ababio, said: “In September 2017, the SEC issued a public notice indicating that it does not regulate Menzgold.
In August 2018, the commission called for an inter-sectoral meeting that involved the Minerals Commission, Bank of Ghana and the Securities and Exchange Commission. The meeting concluded that it was evident Menzgold’s activities appeared to go beyond the mandate authorised in its license.”
The letter from SEC added that failure by Menzgold to comply with the directive “will lead to the SEC employing other relevant measures under the law to enforce compliance.”
As a response to the letter from the Security and Exchange Commission, Menzgold on September 13, 2018, announced that it has temporarily halted its collectibles and any new business related to its gold vault market with immediate effect and since the halt of business, Menzgold has not been able to resume till date.
Eventually, Menzgold on September 27, 2018 hauled SEC and the Bank of Ghana (BoG) to court over what it deemed as an unfair treatment being meted out to the company. Menzgold in its suit is seeking an order from the court to halt these two state institutions from interfering in its business and operations.
The gold dealership company is also asking the court to stop the BoG and the SEC from further publishing what it described as “derogatory notices” against its business. However, speaking at a Joy Business Financial Service forum themed: “The Changing Tide of Ghana’s Financial Service Sector: The Cause, The Cost, the Clean up,” Deputy Finance Minister, Charles Adu Boahen, disclosed that “With the Menzgold issue, I think it is clear that the end is here. He is done.”
He, therefore, cautioned that irrespective of the fact that, Menzgold’s activities have been terminated; the management must pay every depositor’s money without fail.
Pix: Charles Adu Boahen, Deputy Finance Minister