Court throws out Menzgold suit against BoG, SEC

An Accra High Court has thrown out a suit filed by troubled gold firm, Menzgold Ghana Limited against the Bank of Ghana and the Security and Exchange Commission (SEC).

The High Court presided over by Mrs Justice Akua Amoah, dismissed the suit after a preliminary legal objection raised by SEC and BoG.

According to the Central Bank and SEC, Menzgold failed to exhaust all the regulatory mechanism for redress before rushing to court.

Background

The embattled gold dealership company, sued the Securities and Exchange Commission (SEC) and the Bank of Ghana in September, 2018 after its licence was revoked by SEC.

The company in its suit sought from the court an order directing the two institutions to stop interfering in its business.

Menzgold also asked the court to stop the Bank of Ghana and the SEC from publishing what it described as “derogatory notices” against its business.

“An order of perpetual injunction to restrain the Bank of Ghana and Securities and Exchange Commission, its officers, servants and agents from interfering with Menzgold’s business activities or further acts of disobedience and non-compliance with law by publishing any derogatory notices.”

Menzgold also wanted the two institutions to publish an unqualified retraction and apology for the notices they published against the gold dealership company.

It also asked the court to tell both institutions that it’s gold dealership business does not fall under any of their laws.

This comes after the CEO of Menzgold Nana Appiah Mensah was declared wanted on Wednesday by the Circuit Court in Court. He has been charged for defrauding under false pretense.