The lawyers of gold trading firm, Menzgold Ghana Limited, have stated that the temporary suspension of the company’s activities should not be perceived as an admission of wrongdoing.
Menzgold suspended any new business related to its gold vault market temporarily following an order by the SEC to shut down all of its gold trading operations with the public.
The action was taken by the company despite initially indicating that it was still open for business.
In a letter from the Chicago-based legal firm to the SEC and the Minerals Commission, Baker & Mckenzie LLP added that the decision to shut down its operations was taken by the company as a sign of good faith as it sought a resolution to the standoff with the SEC.
“The Company will, as a demonstration of good faith and willingness to fully co-operate with the SEC while this matter is resolved, desist in these specific activities outlined in the SEC Communications.”
“In a letter from the Chicago-based legal firm to the SEC and the Minerals Commission, Baker & Mckenzie LLP added that the decision to shut down its operations was taken by the company as a sign of good faith as it sought a resolution to the standoff with the SEC.”
The law firm also stated in the letter that it will provide a response in due course explaining why its operations are in line with the laws of Ghana
It emerged on Wednesday that the SEC had ordered Menzgold to shut down its gold trading operations with the public.
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 for clients without a valid license from them.
The SEC’s directives and the responses from the company have received mixed public reactions with some applauding the regulator for its actions, while others have described it as a witchhunt.
According to the SEC, Menzgold’s actions are in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”