Prime News Ghana

PHOTOS: Customers storm Menzgold premises for their deposits

By Clement Edward Kumsah

Customers of Menzgold Ghana Limited have stormed the premises of the gold dealership firm in East Legon to retrieve their deposits.

The customers action comes following an order by the Securities and Exchange Commission (SEC) directing the company to shut down all investment trading in gold with immediate effect. 

Initially, chaotic scenes sparked by the SEC announcement have now calmed after the customers who are worried about the safety of their deposits were permitted into the Menzgold premises.

Over 200 customers are currently at the premises of Menzgold but many more continue to troop in.

Menzgold Ghana Company has severely criticized and rejected as worthless, a letter issued to them by the Securities and Exchange Commission (SEC)  directing them to shut down all investment trading in gold.

A statement from the management of Menzgold says the letter from the SEC is “needless, in bad faith” and “distasteful”, as they were cooperating with the commission to arrive at a cordial resolution to matters relating to their operations.

By a letter dated September 3, 2018 and 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 that Menzgold’s activities appear to go beyond the mandate authorised in its licence".

However, in a response to the SEC statement, Menzgold said in the wake of the Bank of Ghana’s warning to the public to desist from doing business with the organization, they company availed itself to all relevant state institutions for various consultations and dialogues with the objective to arrive at a productive and sustainable resolution.

One of such organisations is the Securities and Exchange Commission with whom we have been hopeful of arriving at a cordial resolution to all matters, if any, then we submit to its standards if we must, the statement added.

This needless leak believed to be coming from the Securities and Exchange Commission is, to say the least, in very bad faith and distasteful; as it defeats our confidence in the body and an affront to cooperation. We totally condemn it!” 

Management of Menzgold said they have referred the matter to their lawyers for the right action to be taken and assured its customers that neither Menzgold as a business entity nor any of its products has been shut down.

“Your gold trades are very safe and business is proceeding as usual,” the company said.

Ghana News: Latest Business news in Ghana