Business News of Wed, 12 Sep 20189
Menzgold directed to shut down operations
The Securities and Exchange Commission has directed gold trading firm Menzgold Ghana Limited to shut down their operations with immediate effect for contravening the Securities Industry Act, 2016 (Act 929).
According to a letter addressed to the Menzgold boss Nana Appiah Mensah by the SEC, investigations conducted by the regulator found that Menzgold's business which involves the purchase/deposit of gold from the public and contracts issued with guaranteed returns with clients is a capital market activity which cannot be conducted without a valid license issued by the SEC.
The letter signed by Paul Ababio, the Deputy Director-General of the SEC, warned that the failure of Menzgold to comply with the directive will lead to the SEC employing other relevant measures under the law to enforce compliance.
However, the SEC's directive does not affect Menzgold's other business dealings such as assaying, purchasing gold from small-scale miners and export of gold which is regulated by the Minerals Commission.