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 has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
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’s CEO, Derek Akubia.
SEC stated that despite being licensed to only purchase and export gold from licensed sellers, Menzgold also sells and purchases gold collectibles from the general public through its agent, Brew Marketing.
The Commission has since requested for “detailed information” on the activities of the company which the lawyers of Menzgold have agreed to provide within 14 days.
Social Media was flooded with reactions when the news broke and celebrities including Sarkodie, Donzy and more have reacted;
“One man doing the most for our beloved country knowing him personally he genuinely cares about the country’s progress … might not know the ins and outs but one thing is for sure – the Nam1 mission is for a better Ghana Bless @mn_appiah”
Ah! So why are u happy about MENZGOLD being ordered to Shutdown? ..Adongerrit♂️
— Donzy (@Donzy_Chaka) September 12, 2018
Our financial regulators are jokers. So after Menzgold is allowed to operate for over a year, the SEC is now saying the company’s practices are fraudulent, that the company is operating without a license? After one whole year????
— Kinna Likimani (@kinnareads) September 12, 2018
One man doing the most for our beloved country knowing him personally he genuinely cares about the country’s progress … might not know the ins and outs but one thing is for sure – the Nam1 mission is for a better Ghana Bless @mn_appiah pic.twitter.com/mrSGgx47d9
— HIGHES➕ (@sarkodie) September 13, 2018
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