Menzgold condemns 'needless' SEC directive to stop gold trading
Menzgold Ghana Limited has condemned what it describes as needless leak of a meeting it had with the Securities and Exchange Commission (SEC).
The gold trading company said the leak to the media of a confidential meeting “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!”
The company in a statement Thursday said, in the wake of the Bank of Ghana (BoG) warning to the public to desist from doing business with the organization, it "availed itself to all relevant State Institutions for various consultations and dialogues designed to arrive at a productive and sustainable resolution."
Menzgold's statement is in response to a directive by SEC for the embattled company to suspend their gold trading with the public with immediate effect.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.
The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.
The supply of those documents, however, does not clear Menzgold to continue the mentioned aspects of Menzgold’s business.
“That aspect poses a threat to unsuspecting and uninformed investors,” SEC noted.
But the management of Menzgold said it "finds it very unfortunate that a letter relating to business discussions between the organization and the Securities and Exchange Commission has found its way to the public."
The company said as a law-abiding organization they have referred the matter to their lawyers and rest assured, the right action shall be taken.
"We hereby assure all our cherished customers that neither Menzgold as a business entity nor any of its products has been shut down.
"We urge for calm as we deal with this matter to its logical conclusion. Your gold trades are very safe and business is proceeding as usual," the company said.