The Securities and Exchange Commission (SEC) has directed Menzgold to halt operations.
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.
A statement form SEC 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 licenseissued to it by MINCOM”