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Menzgold\u00a0Ghana Limited has hired\u00a0an international law firm, Baker\u00a0& McKenzie LLP, as it prepares for a legal confrontation with the\u00a0Securities and Exchange Commission (SEC), following an order for the company to suspend its gold trading operations with the public<\/p>\n
In a letter to the SEC and the Minerals Commission sighted by\u00a0citinews,\u00a0<\/strong>the Chicago-based legal firm informed the two regulators that it had been contracted by the gold trading company to represent its interests.<\/p>\n The letter acknowledged\u00a0Menzgold\u2019s receipt of the directives from the SEC and added that it will provide a\u00a0response in due course explaining why its operations are in line with the laws of Ghana.<\/p>\n It emerged on Wednesday that the SEC had ordered Menzgold\u00a0to\u00a0shut down its gold trading<\/b><\/a>operations with the public.<\/p>\n 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 for clients without a valid license from them.<\/p>\n The SEC\u2019s directives and the responses from the company have received\u00a0mixed public reactions<\/strong><\/a>with some applauding the regulator for its actions, while others have described it as a witch-hunt.<\/p>\n According to the SEC, Menzgold\u2019s actions are 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 After initially indicating that it was still\u00a0open for business<\/strong><\/a>, the company has eventuallysuspended\u00a0<\/strong><\/a>any new business\u00a0related to its Gold vault market temporarily.<\/p>\n Baker & Mckenzie LLP emphasized in its letter that the suspension of the company\u2019s operations was \u201cvoluntary\u201d and should not be perceived as an admission of wrongdoing by the Menzgold.<\/p>\n The company\u00a0believes that its action was a\u00a0 \u201cgesture of good faith\u201d as it attempts to find a cordial resolution to the situation with the regulators.<\/p>\n \u201cThis voluntary and temporary cessation of these alleged activities is without prejudice to the Company\u2019s legal position nor any acknowledgement of wrongdoing in any way. It is a simple gesture of good faith to give all pause for consideration of the technical legal issues and to allow its lawyers to fully engage with the SEC on this matter.\u201d<\/p><\/blockquote>\n![\"\"](\"https:\/\/citinewsroom.com\/wp-content\/uploads\/2018\/09\/BakerMkenzie.jpg\")