General News of Friday, 28 September 2018
Menzgold has told its customers they cannot terminate their contract with the firm until its suit against the Bank of Ghana and the Securities and Exchange Commission is determined by the court.
“As a result of the shutdown of the gold trade business, the firm cannot process any kind of termination on the gold vault market until a healthy restoration is determined by the courts since we have filed a suit already,” the company said in a statement Thursday.
That notwithstanding, the company says it will resume payment of dividend to its customers today after the exercise was placed on hold following the directive from the Securities and Exchange Commission (SEC).
“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 that the 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 against the BoG and SEC 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.