The Securities and Exchange Commission, SEC has written 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 current decision by the Securities and Exchange Commission comes after several warnings from the Bank of Ghana to Menzgold to stop trading in gold without a licence.
The central bank, on 7 August 2018, issued a public notice, the fourth of many, that it was in discussions with relevant regulatory authorities to sanction Menzgold for engaging in “solicitation, receipt of money or investment and the payment of dividends or returns to its clients” without a licence to do so.
Also, The Securities and Exchange Commission (SEC) in October 2017 announced that Menzgold Ghana Limited, an investment company has not been licensed to operate in the capital markets.
In a notice published in the Monday, October 2 2017 edition of the Daily Graphic newspaper, the SEC informed the general public that Menzgold Ghana Limited has "neither been licensed nor their adverts sanctioned by the Securities and Exchange Commission (SEC) to carry out any activity in the capital market".
Meanwhile, 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.”