The Securities and Exchange Commission has directed gold trading firm Menzgold Ghana Limited to shut down their operations with immediate effect.
The letter which was addressed to Nana Appiah Mensah by the SEC states that the bank should shut down for contravening the Securities Industry Act, 2016 (Act 929).
This follows investigations conducted by the regulator SEC, which found out that Menzgold’s business which involves the purchase/deposit of gold from the public and contracts issued with guaranteed returns with clients is a capital market activity which cannot be conducted without a valid license issued by the SEC.
Menzgold in the past month was in a heated back and forth with the bank of Ghana with respect to the deposits and paying of returns on such deposits of which Nana Appiah had to apologize for and state clearly that the matter is being resolved amicably.
By this letter, they are being prevented from trading in Gold as deposits and and paying returns on such deposits but any other dealings in Gold the organization is allowed.
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