Gold trading firm Menzgold wants its customers to keep calm amidst the strong action from the Securities and Exchange Commission (SEC) against the company to stop their trading activities with the public.
MenzGold has expressed disquiet about the regulator’s leaking of its directive to them in spite of all the cooperation vis a vis the investigations into their business.
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. The business, according to SEC is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
“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 authorized by the SEC. No new contracts should be created and all advertising of the investment business halted with immediate effect.”
In its response to the development, Menzgold said it is “The Management of Menzgold Ghana finds it very unfortunate that a letter relating to business discussions between the organization and the Securities and Exchange Commission has found its way to the public,” questioning the propriety of the leakage by the regulator.
“Menzgold in the wake of the Bank of Ghana warning to the public to desist from doing business with the organization availed itself to all relevant State Institutions for various consultations and dialogues designed to arrived at a productive and sustainable resolution. One of such organizations is the Securities and Exchange Commission with whom we are hopeful of arriving at a cordial resolution to all matters if any, then we submit to its standards,”.
”This needless leaks believed to be coming from the Securities and Exchange Commission or the Bank of Ghana, is in a very bad faith and distasteful; as it defeats our confidence in the bodies and an upfront to cooperation of which we totally condemn.
“We find its rather very interesting that, the same note from the SEC that seems to forbid new transactions on grounds on illegality, is directing the promotion of existing ones by the same letter. A clear contradiction, ill-principled and a shot in the foot.
“As a 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 shut down. 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”.