Menzgold halts gold vault business ‘temporarily’

Gold-trading firm, Menzgold Ghana Limited, has temporarily halted its business in relations to all extra value payments and any new business related to their Gold Vault Market.

“The halt takes effect from Thursday, 13 September and will be in place for 6 days, by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out,” management of the company said in a statement.

“We are certain this halt would not go beyond the 19th day of September, 2018,” the statement added.

This follows a letter by the Securities and Exchange Commission (SEC) instructing the gold-trading firm, to stop forthwith, all investment trading in gold without a licence.

In the 7 September 2018 letter signed by Deputy Director General, Paul Ababio, the SEC said: "In September 2017, the SEC issued a public notice indicating that it does not regulate Menzgold. The SEC began further investigations into the activities of Menzgold in July 2018. In August 2018, the Commission called for an inter-sectoral meeting that involved the Minerals Commission, Bank of Ghana and the Securities and Exchange Commission. The Meeting concluded that it is evident Menzgold’s activities appear to go beyond the mandate authorised in its licence".

The SEC added: "It is our expectation that being your licencee, MINCOM, would call Menzgold to order and direct it to conduct its business in accordance with the licence issued to it by MINCOM".

It follows several warnings from the Bank of Ghana to the local gold firm, to stop trading in gold without a licence.

The central bank, on 7 August 2018, issued a public notice, the fourth of many, that it was in discussions with relevant regulatory authorities to sanction Menzgold for engaging in “solicitation, receipt of money or investment and the payment of dividends or returns to its clients” without a licence to do so.

The BoG, in an advertorial in the dailies signed by Mrs Caroline Otoo, Secretary to Governor Dr Ernest Addison, said in spite of several of cautions to Menzgold Ghana Company Limited to desist from the act, it persists in its deposit-taking activity in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

Below is the full statement from Menzgold:

GOLD VAULT MARKET PRODUCT SERVICES TEMPORARILY HALTED

Following the notice from the Securities and Exchange Commission of Ghana issued on the 7th day of September, 2018, the Management of Menzgold Ghana limited in its bid to bring some finality to the issues once and for all has decided to place a temporal halt on all extra value payments and any new business related to our Gold Vault Market.



The halt takes effect from Thursday 13th September and will be in place for 6 days, by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out.

We are certain this halt would not go beyond the 19th day of September, 2018.

This decision, though very unfavourable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state.

We would, as usual count on your understanding and cooperation during this period. For any further clarification please call 0303 976 961 or 020 111 3287.

Any inconvenience caused is deeply regretted. Thank you.

Signed Management, MENZGOLD