Management of Menzgold has announced that it has temporarily halted its collectables and any new business related to its gold vault market with immediate effect.
According to the company, the halt of what is also called extra value payments takes effect from today Thursday, September 13 and will be in place for six days, "by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out."
The company is hopeful the halt would not go beyond September 19, 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 Securities and Exchange Commission, SEC wrote to Menzgold Ghana Company, to shut down all investment trading in gold.
In the 3 September 2018 letter 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 Menzgold’s activities appear to go beyond the mandate authorised in its licence".
The SEC said: "It is our expectation that being your licencee, MINCOM, would call Menzgold to order and direct it to conduct its business in accordance with the licence issued to it by MINCOM".
The September 3, 2018 letter from SEC stated added that failure by Menzgold to comply with the directive “will lead to the SEC employing other relevant measures under the law to enforce compliance.”
However, in a quick response yesterday, September 12, 2018, 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.
Below is full Statement from Menzgold issued Today September 13, 2018
Following the notice from the Securities and Exchange Commission of Ghana issued on the 7th day 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 temporal halt on all extra value payments and any new business related to our Gold Vault Market.
We are certain this halt would not go beyond the 19th day 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.
Any inconvenience caused is deeply regretted. Thank you.