Menzgold Ghana Company has criticized and rejected as worthless, a letter issued to them by the Securities and Exchange Commission (SEC) directing them to shut down all investment trading in gold.
A statement from the management of Menzgold says the letter from the SEC is “needless, in bad faith” and “distasteful”, as they were cooperating with the commission to arrive at a cordial resolution to matters relating to their operations.
In the 3 September 2018 letter signed by Deputy Director General, Paul Ababio, the SEC said: “In September 2017, the SEC issued a public notice indicating that it does not regulate Menzgold. The SEC began further investigations into the activities of Menzgold in July 2018. 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 is evident Menzgold’s activities appear to go beyond the mandate authorised in its licence”.
The SEC said: “It is our expectation that being your licencee, MINCOM, would call Menzgold to order and direct it to conduct its business in accordance with the licence issued to it by MINCOM”.
The central bank, on 7 August 2018, issued a public notice, the fourth of many, that it was in discussions with relevant regulatory authorities to sanction Menzgold for engaging in “solicitation, receipt of money or investment and the payment of dividends or returns to its clients” without a licence to do so.
The SEC letter 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.”
However, in a response to the SEC statement, Menzgold said in the wake of the Bank of Ghana’s warning to the public to desist from doing business with the organization, they company availed itself to all relevant state institutions for various consultations and dialogues with the objective to arrive at a productive and sustainable resolution.
One of such organisations is the Securities and Exchange Commission with whom we have been hopeful of arriving at a cordial resolution to all matters, if any, then we submit to its standards if we must, the statement added.
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. We totally condemn it!”
Management of Menzgold said they have referred the matter to their lawyers for the right action to be taken and assured its customers that neither Menzgold as a business entity nor any of its products has been shut down.
“Your gold trades are very safe and business is proceeding as usual,” the company added.