Menzgold Halts Gold Vault Market Services

Menzgold, a gold trading firm, has temporarily halted all extra value payments related to its gold vault market.

The halt which began yesterday, September 13, according to the Company, would be in place for six days to resolve issues surrounding its gold collectibles.

A statement issued by the Company read “This decision, though very unfavorable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state.”

The statement follows after the Securities and Exchange Commission, in a letter dated September 7, directed the Company to suspend its operations.

The SEC began investigations into the activities of Menzgold in July 2018.

In August, the Commission called for an inter-sectoral meeting that involved the Minerals Commission, Bank of Ghana and the Securities and Exchange Commission. The Meeting concluded that it is evident Menzgold’s activities appear to go beyond the mandate authorized in its license.

A thorough investigation later conducted by the Commission showed that the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.

In spite of several cautions to the gold trading firm to desist from the act, it continued in its deposit-taking activity in breach of section 6(1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

This led to the Commission directing Menzgold to suspend its operations.

Response

However, following the directive, the gold trading firm has announced it is halting its gold vault market product services to bring some finality to the issue.

“We are certain this halt would not go beyond the 19^th day of September, 2018.

“We would as usual count on your understanding and cooperation during this period,” according to the statement.

Panic

Meanwhile, the directive from the SEC has caused fear and panic within the public.

Customers of Menzgold on Wednesday besieged the premises of the company to retrieve their deposits after the directive from SEC went viral.

The Company has, however, instructed its customers to call the following numbers; 0303976961 or 0201113287 for further clarifications.

By: Emmanuel Yeboah Britwum