General News of Wednesday, 26 September 2018
The management of Menzgold says they are unable to generate any revenue to pay their customers due to the orders from the Securities and Exchange Commission (SEC) to halt its trading activities.
In a statement, Menzgold said, “Any act, order or instruction, therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatever out of which extra values are charged and paid to those entitled.”
The statement further said, “Menzgold Ghana is still committed to ensuring that business operations return to normalcy as soon as possible as the firm is deeply saddened by the social and economic inconveniences this decision and directive of the SEC has caused our customers and the organisation.”
The management, however, promised all their customers to remain calm as their investments are safe with the organisation.
Some aggrieved customers of Menzgold Ghana Limited have threatened to take legal action against the company to recover their investments if it fails to resume operations after its September 28 deadline.
The investments of the aggrieved customers have been locked up following the suspension of the company’s gold vault market services.
The threat by some of the customers followed a decision by the company to extend the suspension of its gold vault market services for the second time, in the wake of the controversy between it and the Securities and Exchange Commission (SEC).
Although the management of Menzgold was initially defiant in complying with the SEC’s order to shut down operations because the company was not licensed to do so, it announced last Wednesday, September 12 that it had placed a temporary halt on its operations.
The temporary suspension expired last Tuesday, September 18 and the company was supposed to resume operations on Wednesday, September 19, 2018.
However, in another statement signed by the Head of Communications, Mr George Quaye, and issued in Accra last Tuesday, the company said it had extended the suspension of its services to the public until Friday, September 28, 2018.
25TH September 2018 MEDIA RELEASE
RE: NOTICE TO SUSPEND TRADING WITHOUT LICENSE
On an interview on Joy News TV earlier this evening, Deputy Director General of the Securities and Exchange Commission, Paul Ababio, indicated that, they hadn’t stopped MenzGold Ghana from paying matured extra values to customers and that, the directive was to desist from establishing new contracts.
We find this position rather surprising as it shows a clear dearth in the SEC’s understanding of our Gold Vault Market product and raises the question of the basis upon which they decided to shut it down.
The Gold collectibles offered for trade by patrons of our Gold Vault Market Product are subjected to our quality controls and traded for profit which is shared as Extra Value with the product owner or trader.
Any act, order or instruction therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which Extra Values are charged and paid to those entitled.
Thought provoking as these ambiguities on the part of the SEC may be, Menzgold Ghana is still committed to ensuring that business operations return to normalcy as soon as possible as the firm is deeply saddened by the social and economic inconveniences this decision and directive of the SEC has caused our Customers and the organization.
Menzgold Ghana assures all customers and patrons that all Gold trades are safe. The leadership of the firm will continue to engage with the relevant bodies to expedite the reimbursement of all entitlements.