Menzgold Ghana Limited has temporarily halted operations effective today, September 13, 2018, following a directive from the Securities and Exchange Commission (SEC).
The company in a statement said it took the decision to help bring some finality to its seemingly unending woes.
“Following the notice from the Securities and Exchange Commission of Ghana issued on the 7thday 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 temporary halt on all extra value payments and any new business related to our Gold vault market,” a statement from management of Menzgold stated.
According to the company, it is halting operations for six days with the hope that all pending issues would have been resolved by then.
“We are certain this halt would not go beyond the 19thday 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,” the statement added.
SEC orders Menzgold to suspend ‘illegal’ trading operations
Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).
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 was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
‘We’re still open for business, SEC’s leaked letter distasteful’
The management of Menzgold on Wednesday tried to defy the SEC directive saying it was still open for business.
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.