BoG backs SEC's shutdown of Menzgold

The Bank of Ghana (BoG) has thrown its weight behind the Securities and Exchange Commission (SEC) for shutting down gold-trading firm Menzgold Ghana Limited.

SEC ordered the company to suspend its gold vault marketing operations over certain regulatory infractions, a situation which the legal advisor to the gold-trading firm, Kwame Akuffo, said smacked of unfairness.

In a recent press interaction, the central bank, which in the past issued several warnings to the public against dealing with Menzgold, said it endorses SEC’s move.

“In our view, they were more or less taking deposits which we disagreed with and they have also had issues with the SEC. The SEC has decided to take action against them and we fully support the SEC in the action that they have taken against Menzgold,” Governor of the central bank, Dr Ernest Addison, said on Monday, 25 September 2018 following a Monetary Policy Committee (MPC) meeting.

He added that he does not “think at this point, BoG needs to do any additional thing”.

Meanwhile, Menzgold has had to extend the suspension of its gold vault marketing business to 28 September 2018 after inconclusive discussions with SEC over certain regulatory disagreements.

In a statement signed by Head of Communication George Quaye, Menzgold said: “Following our correspondence with the Securities and Exchange Commission (SEC), we regret to advise that the Gold Vault Market product services will continue to be suspended until the 28th of September 2018 to enable us to reach a useful conclusion with the Securities and Exchange Commission”.

The company told its customers that “the inconvenience caused by factors beyond our control is deeply regretted”.

It added: “We continue to thank you for your support, patience and cooperation we have received from you in these trying times”.