Menzgold announces temporary halt to its gold vault business

The management of Menzgold has announced that they have temporarily halted all extra value payments and any new business related to their gold vault market. 

According to the company, the temporary halt takes effect from Thursday, September 13 2018 and it will be in force for six days. The company is of the conviction that the halt would not exceed September 19, 2018.

“The 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 of the state,” the press release issued by the company stated.

Background

On September 7, 2018, the Securities Exchange Commission (SEC) directed Menzgold to stop trading in their gold collectibles without the appropriate licence.

In a letter to Menzgold on August 27, 2018, the SEC gave Menzgold two days to respond to queries about their operations. Menzgold responded to this letter by asking for a two – week period to respond. According to the gold dealership company, the SEC failed to respond to their request for the said extension, and went ahead to order them to cease the aspect of their business which involves purchase and deposit of gold collectibles and guaranteed returns. Menzgold has described this move as “bad faith” and an “unhealthy over – reach”. According to the SEC, the aspect engaged in by Menzgold is a capital market activity under Act 292 for which the company requires a valid licence to operate.

Menzgold has been previously involved in a similar standoff with another regulatory body, the Bank of Ghana. In August 2018, the Bank of Ghana cautioned the general public about dealing with Menzgold. This caused the CEO of Menzgold, Nana Appiah Mensah to apologize to the Bank of Ghana after describing it as a joke.

According to the regulatory bodies, the gold dealership company is operating a business module that is not covered by the licence it has been given.

Below is the full press release from Menzgold issued on Thursday 13th September, 2018

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