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Menzgold Ghana Limited\u00a0has been asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).<\/p>\n
According to the SEC, Menzgold\u00a0has 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.<\/p>\n
This, the SEC says, is in contravention of \u201csection 109 of Act 929 with consequences under section 2016 (I) of the same Act.\u201d<\/p>\n
The company has however been cleared to continue its \u201cother businesses of assaying, purchasing gold from small-scale miners and export of gold.\u201d<\/p>\n
The SEC said in its statement, dated September 7, that 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\u2019s CEO, Derek Akubia.<\/p>\n
SEC stated that despite being 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.<\/p>\n
The Commission has since requested for \u201cdetailed information\u201d on the activities of the company which the lawyers of Menzgold have agreed to provide within 14 days.<\/p>\n
The SEC, however, believes that this notwithstanding, the company\u2019s activities constitute an illegality and are \u201ca threat to unsuspecting and uninformed investors.\u201d<\/p>\n
\u201cAccordingly, the SEC hereby directs Menzgold Company Ltd to shut down immediately\u00a0the business of trading in gold\u00a0collectibles 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.\u201d<\/p><\/blockquote>\n
The statement from the SEC added that failure by Menzgold to comply with the directive \u201cwill lead to the SEC employing other relevant measures under the law to enforce compliance.\u201d<\/p>\n
The Commission also called on the Minerals Commission which licensed the operations of the gold trading company to \u201ccall Menzgold to order and direct it to conduct its business\u00a0 in accordance with the licenseissued to it by MINCOM\u201d<\/p>\n
Read the SEC\u2019s letters to Menzgold and the Minerals Commission\u00a0HERE<\/a><\/strong><\/p>\n