The Securities and Exchange Commission (SEC) has noted that the regulatory body will continue to monitor the dealings of Menzgold Ghana Limited, who are set to begin migrating customers to a newly-established online platform.
The gold dealership firm will on Monday launch an online gold store, a buying and selling market platform, known as Menzgold Global Market.
However, SEC said it will continue to keep a close eye on the online dealings of the company and will intervene if necessary.
A press statement by the Head of Legal and Enforcement at SEC, Nii Oman Badoo, said it will make sure that Menzgold does not go against any regulations.
“We have also picked signals in public on the issue about an online business. We are monitoring. As long as it offends our legal or regulatory regime, we will come into play. As long as that platform falls within the regulatory regime of the SEC, the SEC will act.” – the statement stated.
Menzgold was asked to suspend its gold trading operations with the public by the 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.
This, the SEC said this 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.”
Despite initial protests, Menzgold complied with the directive. It has however failed to fully pay its numerous aggrieved customers the value on their gold deposits as well as their entire investments.
As a result of this, the suspicion that the company was operating a scam has heightened.
The Chief Executive Officer of Menzgold Ghana Limited, Nana Appiah Mensah, popularly known as NAM 1, has assured customers of the embattled company that Menzgold will not collapse.
He, however, did not indicate when the thousands of their stranded customers will get the value on their gold or be given their entire investments.
“I believe that with every issue, dialogue can resolve it. We are all Ghanaians, and we are working for Ghanaians in good faith. We have hopes that this issue will end peacefully and all stakeholders will help us.”