SEC directive makes it 'impossible' to pay you – Menzgold to clients

Gold-trading firm Menzgold Ghana Limited, has issued a statement saying the directive by the Securities and Exchange Commission (SEC) to the company to temporarily shutdown its Gold Vault Market operations, has made it “impossible” for the company to “trade” in gold “to generate any revenue whatsoever out of which Extra Values are charged and paid to those entitled”.

In a statement to react to a comment by the Deputy Director General of SEC, Paul Ababio that the regulator has not stopped the Ghana-headquartered gold-dealership firm from paying its existing customers their entitlements, Menzgold said: “The gold collectibles offered for trade by patrons of our Gold Vault Market Product are subjected to our quality controls and traded for profit, which is shared as Extra Value with the product owner or trader”, therefore, “Any act, order or instruction designed or decreed to forbid Menzgold from trading” makes it impossible for the company to honour its obligation to existing clients.

Read Menzgold’s full statement below:

25TH September 2018 MEDIA RELEASE

RE: NOTICE TO SUSPEND TRADING WITHOUT LICENCE

In an interview on Joy News TV earlier this evening, Deputy Director General of the Securities and Exchange Commission, Paul Ababio, indicated that they hadn’t stopped Menzgold Ghana from paying matured extra values to customers and that the directive was to desist from establishing new contracts.

We find this position rather surprising as it shows a clear dearth in the SEC's understanding of our Gold Vault Market product and raises the question of the basis upon which they decided to shut it down.

The gold collectibles offered for trade by patrons of our Gold Vault Market Product are subjected to our quality controls and traded for profit, which is shared as Extra Value with the product owner or trader.

Any act, order or instruction, therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which Extra Values are charged and paid to those entitled.

Thought-provoking as these ambiguities on the part of the SEC may be, Menzgold Ghana is still committed to ensuring that business operations return to normalcy as soon as possible as the firm is deeply saddened by the social and economic inconveniences this decision and directive of the SEC has caused our customers and the organisation.

Menzgold Ghana assures all customers and patrons that all gold trades are safe. The leadership of the firm will continue to engage with the relevant bodies to expedite the reimbursement of all entitlements. Signed

MENZGOLD Management