Intervene for us to resume operations – Menzgold begs Parliament

Distressed gold dealership firm, Menzgold Ghana Limited, which was forced to shut down its operations in the country over alleged illegalities has run to parliament to intervene so the company can resume operations and pay its customers. In a petition to Parliament, Menzgold is pleading with the House to particularly intervene in the impasse between it and the Securities and Exchange Commission (SEC) which, the company claimed has caused delays in paying its customers interest on their investments. Thousands of Menzgold customers across the country have since August this year been struggling to retrieve their funds as the company has consistently failed to meet its own deadline of paying the monies.

The company claimed in the petition to the Finance Committee of Parliament that the complete shutdown of its gold collectible vault by SEC has “caused a lot of serious challenges for the company and its customers [both local and foreign]”. It thus want parliament to “intervene and help resolve this matter amicably”. Menzgold has consequently proposed to the House to consider a comprehensive payment plan to help it pay off completely, all customers who wish to discontinue their trading of gold collectibles. Also, to withhold gold collectibles trading operations for three months in order for the firm to re-organise and restructure its corporate operations as well as revise the business module and review the percentage offering on its gold collectible trade. Background The Bank of Ghana (BoG) in that notice stressed that Menzgold Ghana Limited is not licensed and has no authority to engage in the solicitation, receipt of money or investments and the payment of dividends or returns to its clients which is captured in Section 6 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
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The BoG in the notice also hinted of impending sanctions, saying after several cautions to Menzgold, it has started discussions with relevant regulatory authorities to sanction them for breaching the law. Though Menzgold called the bluff of the central bank, it was forced to shut down in September by the SEC and ordered the firm not to take new contracts (investments). SEC claimed evaluation of Menzgold’s documentations show the company does not have the licences to trade in gold, and that, its operations are in breach of Act 929 “as well as a threat to unsuspecting and uninformed investors”. The company has since been in tango with SEC as well as customers and investors who are demanding their returns and investments. By Irene Amesimeku|| Ghana]]>