Menzgold extends suspension of gold vault operations

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  • Gold dealership firm, Menzgold, will not open to the public today [September 19, 2018] contrary to its earlier promise.

Customers who hope to engage the firm on their gold dealership services would have to wait till September 28.

Menzgold temporarily shut down following an impasse with the Securities and Exchange Commission, regulator of the capital market on the nature of their business.

A statement from the company said its gold vault market product services will continue to be suspended to enable Menzgold reach a conclusion with the regulator.

Speaking to CitiNews, Head of Communication at Menzgold Ghana Limited, George Quaye, said the latest postponement was due to an inconclusive meeting with the Securities and Exchange Commission.

Menzzy

Menzgold Ghana Limited temporarily halted operations on September 13, 2018, following a directive from the Securities and Exchange Commission (SEC).

The company in a statement said it took the decision to help bring some finality to its seemingly unending woes.

“Following the notice from the Securities and Exchange Commission of Ghana issued on the 7th day of September, 2018, the Management of Menzgold Ghana limited in its bid to bring some finality to the issues once and for all has decided to place a temporary halt on all extra value payments and any new business related to our Gold vault market,” a statement from management of Menzgold stated.

According to the company, it was halting operations for six days with the hope that all pending issues would have been resolved by then.

“We are certain this halt would not go beyond the 19th day of September 2018. This decision, though very unfavourable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state,” the statement added.

SEC orders Menzgold to suspend ‘illegal’ trading operations

Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).

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.

This, the SEC says, is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”

The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”

By: Pius Amihere Eduku/citibusinessnews.com/Ghana