The Securities and Exchange Commission has ordered, gold trading firm, Menzgold Ghana Limited to suspend their operations with the public with immediate effect.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.
The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.
The supply of those documents, however, does not clear Menzgold to continue the mentioned aspects of Menzgold’s business.
“That aspect poses a threat to unsuspecting and uninformed investors,” SEC noted.
SEC also ordered that no new contracts of such should be created and all advertisement on same should cease.
It added that failure to comply would force SEC to enforce the directive through alternative means.
Menzgold is, however, free to continue purchasing gold from small-scale miners and exporting same.