Gold-trading firm, Menzgold Ghana Company, has described as unfortunate, a letter from the Securities and Exchange Commission (SEC) directing the company to stop forthwith, all investment trading in gold without licence.
According to the Menzgold, the letter from the SEC is “needless, in bad faith” and “distasteful”, as they were cooperating with commission to arrive at a cordial resolution to matters relating to their operations.
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 added: “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”.
It follows several warnings from the Bank of Ghana to the local gold firm, to stop trading in gold without licence.
Reacting to the letter, the management of Menzgold, in a statement, said: “It is very unfortunate that a letter relating to business discussions between the organisation and the Securities and Exchange Commission has found its way to the public.
“Menzgold, in the wake of the Bank of Ghana’s warning to the public to desist from doing business with the organization, availed itself of all relevant state institutions for various consultations and dialogues designed to arrive at a productive and sustainable resolution.
“One of such organisations is the Securities and Exchange Commission 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!”
Management of Menzgold said they have referred the matter to their lawyers for the right action to be taken and assured their customers that neither Menzgold as a business entity nor any of its products has been shut down.
“Your gold trades are very safe and business is proceeding as usual,” the company said.