Menzgold suspends services for six days

Menzgold Ghana Limited has suspended all services relating to extra value payments and gold vault market effective Thursday.  The announcement comes on the back of a directive by the  Securities and Exchange Commission (SEC) of Ghana issued Friday, September 7, instructing the company to immediately shut down for violation of the law. The Commission had said the evaluation of Menzgold’s documentation shows that the gold-trading firm does not have the licenses and that its operations are in breach of Act 929 “as well as a threat to unsuspecting and uninformed investors”.

• SEC orders immediate shutdown of Menzgold

Lawyers for MenzGold earlier called the bluff of SEC and stated they would not comply with the directive, dismissing all claims of illegality. “Under the circumstances, we are instructed to inform you that our client finds your purported directive to shut down or suspend its operations untenable and is unable to comply with the terms of your letter dated 7th September, 2018 especially considering the contagion and the effect on the market and its Customers,” lawyers of Menzgold wrote to the SEC earlier Wednesday.

• We can’t comply with your shutdown directive – Menzgold snubs SEC

However, Menzgold later on Wednesday announced it would rather halt temporarily gold vault market product  “in its bid to bring some finality to the issues once and for all”. Menzgold is hopeful all pending issues would be resolved in six days when the company is expected to resume work. According to Menzgold, the decision to suspend services, though an unfavourable one, was informed by “our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state”. By P.D Wedam|editors.3news.com|Ghana