General News of Wed, 12 Sep 20185
‘We’re still open for business, SEC’s leaked letter distasteful’ – Menzgold
The management of Menzgold Ghana Limited has clarified that they are still “open for business” despite a directive from the Securities and Exchange Commission (SEC), for it to suspend its gold trading operations with the public.
The company, in a statement issued in the wake of the SEC’s directive, said that it found the “leak” of its interactions with the Commission “needless, distasteful and in very bad faith.”
Menzgold added that having been engaged in discussions with the SEC in order to find a resolution to the situation, it was disappointed by the release of the details to the public.
“This needless leak believed to be coming from the Securities and Exchange Commission is 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!”
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 with clients, without a valid license from the Commission.
This, the SEC says, is 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.”
“Accordingly, the SEC hereby directs Menzgold Company Ltd to shut down immediately the business of trading in gold collectibles with guaranteed returns to clients which constitutes, in essence, dealing in securities with neither the necessary license nor disclosures authorized by the SEC. No new contracts should be created and all advertising of the investment business halted with immediate effect.”
The statement from the SEC added that failure by Menzgold to comply with the directive “will lead to the SEC employing other relevant measures under the law to enforce compliance.”
In its response however, Menzgold stated that “neither Menzgold as a business entity nor any of its products has been shut down.”
The firm also stated that it had referred the matter to it lawyers and “rest assured, the right action shall be taken.”
Menzgold Ghana 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.
The Economic and Organised Crime Office (EOCO) subsequently invited the Chief Executive Officer Menzgold Ghana Company Limited, Nana Appiah Mensah for questioning.
This development follows public notice by the Bank of Ghana (BoG) indicating that it was moving against Menzgold, which is suspected to be carrying out unlawful transactions by taking deposits.
Read the SEC’s letters to Menzgold and the Minerals Commission HERE
Find the full statement from Menzgold below
MENZGOLD IS OPEN FOR BUSINESS
The Management of Menzgold Ghana 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.
Menzgold in the wake of the Bank of Ghana warning to the public to desist from doing business with the organization availed itself to all relevant State Institutions for various consultations and dialogues designed to arrive at a productive and sustainable resolution.
One of such organizations is the Securities and Exchange Commission with whom we have been hopeful of arriving at a cordial resolution to all matters if any, then we submit to its standards if we must.
This needless leak believed to be coming from the Securities and Exchange Commission is, 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!
As a law-abiding organization, we have referred the matter to our 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.