General News of Mon, 13 Aug 201816

Minerals Commission warned MenzGold against local transactions - Report

Menzgold Company Limited was in 2017 cautioned against its persistent sale of gold to unauthorized persons.

The Minerals Commission in a letter to the company had also given it 10 days to correct its “misrepresentations” in the media concerning its operations and license.

The company, which has recently courted controversy over its operations, was licensed solely to buy gold in Ghana and export to other countries. However, the Minerals Commission observed that the company was misinterpreting the authority granted it by its license BY selling gold to the general public who are not licensed to buy gold.

In the letter which was dated September 19, 2017, the Minerals Commission said its engagement with Menzgold over the matter showed the company was misapplying its license.

“Menzgold sought to interpret its right to buy and export gold as including the right to sell the gold locally as well as internationally. The Commission held that the License only entitled Menzgold to buy from authorized persons and to export same. The Commission further determined that if even the company seeks to sell the gold locally, it could only sell to persons who are licensed to buy gold. Therefore the company’s programme which involve the sale of gold to the general public (who do not have a licence to buy gold) are inconsistent with its license.”

The Commission further cautioned the company to cease its operations in that regard and focus on operating within its licensing authority.

ADVERTISEMENT

“In the light of the forgoing, Menzgold is advised to desist from any business activity that involves the sale of gold to unauthorized persons. Additionally, the company is advised to correct the misrepresentations in the media regarding its Licence within 10 days of the date of this letter [September 19,2017],”

‘BoG chases Menzgold’

The Bank of Ghana, which was to join the Minerals Commission to work with the company to regulate its purchasing and export of gold, last week threatened to take punitive action against Menzgold Ghana Company Limited.

According to the Bank of Ghana (BoG), Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits.

In a public notice issued by the BoG, it said the company has no authority to engage in what it says are the “solicitation, receipt of money or investment and the payment of dividends or returns to its clients.”

The central bank maintained that MenzGold is in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

ADVERTISEMENT

BoG further said in spite of several warnings to the company, Menzgold continues to engage in the illegality; hinting that discussions were already underway with regulatory authorities to enforce the appropriate action on the company.

The central bank, however cautioned the general public against transacting business with MenzGold.

But MenzGold has denied flouting the BoG’s regulations, describing its statement as unfortunate.

“Menzgold finds it unfortunate and disparaging that the Bank of Ghana with whom we have had a number of engagements over the years and taken them through our business operations would still issue such a statement”, the MenzGold’s statement said.

Comments (16)

Related Articles:

Today's News