Business News of Thursday, 27 September 2018
The Securities and Exchange Commission (SEC) has denied reports by gold dealership Company, Menzgold, that it has stopped it from paying dividend on its gold vault business to customers.
SEC says its decision was rather to stop Menzgold from taking deposits on that particular service.
But Menzgold insists it is unable to pay their customers their dividends due to the ban on their operations.
It will be recalled that SEC ordered the gold trading firm to suspend its gold deposit taking business early September.
But in an interview on the Citi Breakfast Show, Deputy Director-General of SEC, Paul Ababio said their decision is mainly to secure the public from losing their funds.
“Our primary concern is the risk that this will become a potential liability because we also have the public interest at heart and I think the communication they wrote to us was that they were not going to comply with our directive. So it is interesting that they communicated to their clients that they are halting their business. We are hoping to get information from them. We don’t act without certain basis” he said.
Mr. Ababio further debunked the notion that his outfit is not helping Ghanaian businesses to grow and rather support foreign businesses and advised local companies to corporate with authorities when the need arises.
“For entrepreneurs out there, we are supportive of them. The key question is what kind of promises are you making and do you have the ability to support those promises? If a regulator is engaging you, you should be communicating. We are a government entity” he added.
Meanwhile Mr Ababio insists SEC has no timeline set to complete their investigations on the matter.
“We didn’t set a timeline in our communication to them. If we are able to cross some of the information hurdles we have, we will work through it, we will come with fairer framework and that is where sort of the decision will be made as to the way forward in terms of their operations. We may have to restructure in some shape or form so that is subject to our deliberations with them as well” he stated.