The beleaguered gold trading firm, Menzgold Ghana Limited, says the shape and projection of its business have been dislodged following the suspension of its operations over regulatory issues.
The Securities and Exchange Commission (SEC) earlier this month ordered the gold trading firm, to suspend its operations with the public with immediate effect. In a September 7 letter, SEC said after thoroughly investigating the activities of Menzgold, it had found out, the firm did not have the license to trade in gold collectibles from the public.
According to SEC, the aspect of Menzgold’s business involving purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by it which contravenes the law.
Addressing the press Thursday to announce the way forward moments after Menzgold sued the Bank of Ghana and SEC over the suspension of its operations, the Corporate Affairs Manager of the gold trading firm, Nana Yaw Ofei said they are “very much alive to the needs our customers.
“It is, however, important to note that the recent circumstances have dislodged the shape and projection of our business.”
As a result, he said “we have set up a payment schedule starting tomorrow, Friday, September 28 to be circulated to all our customers. Customers are encouraged to only visit their branches on the date of their collections as the schedule will strictly be adhered to, to avoid overcrowding at the branches.”
“It’s pertinent to note, however,” he added “that period starting Wednesday 12 September 2018 to date while the gold vault market has remained forcefully shut by the Securities and Exchange Commission, regrettably shall not attract any form of returns whatsoever as the business of the gold trade has been and is still dormant.”
Menzgold in its writ is demanding among other things: “A declaration that the Plaintiff’s business does not fall within the present legislated scope of the Banks and Specialized Deposit -Taking Institutions Act 2016 (Act 930);
“A declaration that Plaintiffs business activities does not fall within the present legislated scope of the Security Industry Act 2016 (Act 929);
“A declaration that the 10 Defendant’s Notices No. BG/GOV/SEC/2018/12 and BG/GOV/SEC/2017/24 dated 6th August 2018 and 28th November 2017 respectively have hurt the business reputation of the Plaintiff;
“A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22^J September 2017 has harmed the business reputation of the Plaintiff;
“A declaration that the lo Defendant’s Notices No. 13G/GOV/SEC/2018/ 12 and BG/GOV/SEC/ 2017/ 2-1 dated 6th August 2018 and 28th November 2017 respectively are an abuse of the Defendant’s discretionary powers contrary to Article 23 and Article 296 of the 1992 Constitution; 1. A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22m September 2017 is an abuse of the Defendant’s discretionary powers contrary to Article 21 and Article 296 of the 1992 Constitution.”
The suit has been occasioned by a directive by SEC to suspend their gold vault trade and the registration of new customers.