Menzgold Ghana has issued a statement in reaction to the notice given it by the Securities and Exchange Commission (SEC) to halt its operation.
The statement issued by management said, ''the company finds it unfortunate that a letter relating to business discussions between the organization and SEC has found its way to the public.’’
SEC in its statement said it has been investigating Menzgold since 2017 but paid a working visit to the company on August 23, 2018 where they met with the Commercial Manager, Nana Yaw Offei and an adviser to the company’s CEO, Derek Akubia.
SEC further noted that Menzgold has been licensed to only purchase and export gold from licensed sellers also sells and purchases gold collectibles from the general public through its agent, Brew Marketing.
“Accordingly, the SEC hereby directs Menzgold Company Ltd to shut down immediately the business of trading in gold collectibles with guaranteed returns to clients which constitutes, in essence, dealing in securities with neither the necessary license nor disclosures authorised by the SEC. No new contracts should be created and all advertising of the investment business halted with immediate effect.”
Failure by Menzgold to comply with the directive “will lead to the SEC employing other relevant measures under the law to enforce compliance, the statement warned.
The Commission also called on the Minerals Commission which licensed the operations of the gold trading company to “call Menzgold to order and direct it to conduct its business in accordance with the license issued to it by MINCOM”
But Menzgold Ghana in its response wrote: ‘’Menzgold in the wake of the Bank of Ghana warning to the public desist from doing business with the organization availed itself to all relevant state institutions for various consultations and dialogue designed to arrive at a productive and sustainable resolution.’’
It added: ‘’one of such organizations is the Securities and Exchange Commission (SEC) 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.’’
‘’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.''
‘’As law abiding organization, we have referred the matter to our lawyers and rest assured; the right action shall be taken. We hereby assure all our cherished customers that neither Menzgold as a business entity nor any of its products has been shutdown. We urge for calm as we deal with this matter to its logical conclusion. Your gold trades are very safe and business is proceeding as usual,’’ the statement noted.