Gold-trading firm Menzgold Ghana Limited has said it will start paying its clients their entitlements from tomorrow, Friday, 28 September 2018.
Corporate Affairs Manager of Menzgold Nana Yaw Offei told journalists at a press conference on Thursday, 27 September that despite its fight with the Securities and Exchange Commission (SEC) having “dislodged the shape and projection of our business”, the company was still “very much alive to the needs our customers”.
“We have set up a payment schedule starting tomorrow, Friday, September 28 to be circulated to all our customers.
“Customers are encouraged to only visit their branches on the date of their collections as the schedule will strictly be adhered to, to avoid overcrowding at the branches.
“It’s pertinent to note, however, that the period starting Wednesday 12 September 2018 to date while the gold vault market has remained forcefully shut by the Securities and Exchange Commission, regrettably shall not attract any form of returns whatsoever as the business of the gold trade has been and is still dormant.”
Prior to the press conference, Menzgold filed a suit against the Bank of Ghana (BoG) and SEC for interfering with its Gold Vault Market operations.
In the suit filed at the High Court, Menzgold is seeking “an order of perpetual injunction to restrain the Bank of Ghana and Securities and Exchange Commission, its officers, servants and agents from interfering with Menzgold’s business activities or further acts of disobedience and non-compliance with law by publishing any derogatory notices.”
The gold-trading firm is also seeking a declaration that its “business does not fall within the present legislated scope of the Banks and Specialised Deposit -Taking Institutions Act 2016 (Act 930)”.
Additionally, Menzgold wants a declaration its “business activities does not fall within the present legislated scope of the Security Industry Act 2016 (Act 929)”.
Below are some other reliefs being sought by Menzgold:
1. A declaration that the 10 Defendant’s Notices No. BG/GOV/SEC/2018/12 and BG/GOV/SEC/2017/24 dated 6th August 2018 and 28th November, 2017 respectively have hurt the business reputation of the Plaintiff;
2. A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22^J September 2017 has harmed the business reputation of the Plaintiff;
3. A declaration that the lo Defendant’s Notices No. 13G/GOV/SEC/2018/ 12 and BG/GOV/SEC/ 2017/ 2-1 dated 6th August 2018 and 28th November, 2017 respectively are an abuse of the Defendant’s discretionary powers contrary to Article 23 and Article 296 of the 1992 Constitution; 1. A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22m September 2017 is an abuse of the Defendant’s discretionary powers contrary to Article 21 and Article 296 of the 1992 Constitution.
The BoG recently threw its weight behind SEC for shutting down Menzgold’s Gold Vault Market operations over certain regulatory infractions, a situation which the legal advisor to Menzgold, Kwame Akuffo, said smacked of unfairness.
In a recent press interaction, the central bank, which in the past issued several warnings to the public against dealing with Menzgold, said it endorses SEC’s move.
Meanwhile, Menzgold has had to extend the suspension of its gold vault marketing business to 28 September 2018 after inconclusive discussions with SEC.