Menzgold Ghana Limited has assured its loyal customers of paying back their investments in monetary values but has, however, stressed that dividends on investments made after September 12, 2018, won’t be paid, citing the shutting of its Gold Vault Market by the Security and Exchange Commission as the main reason.

And that commencing from the period mentioned above, the Corporate Affairs Manager, Nana Yaw Offei submitted that the business of gold trade has been and still dormant, hence attracting no returns.

“…. note however that the period starting Wednesday, 12th September to date while the Gold Vault Market has remained forcefully shut by the SEC regrettably shall not attract any forms of returns whatsoever, as the business of the gold trade has been and still dormant.”

The Securities and Exchange Commission has ordered gold trading firm, Menzgold Ghana Limited, owned by Nana Appiah Mensah to suspend their operations of purchasing and depositing of gold collectibles and guaranteed returns being a capital market activity.

In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, it does not have the license to trade in gold collectibles from the public – and that the firm has contravened Act 929.

In their pursuit of challenging the suspension, Menzgold on Thursday, September 27, filed a suit against Bank of Ghana and the Security and Exchange Commission to seek whether not they have such right. 

Below are some other reliefs being sought by Menzgold:

A declaration that the 10 Defendant’s Notices No. BG/GOV/SEC/2018/12 and BG/GOV/SEC/2017/24 dated 6th August 2018 and 28th November 2017 respectively have hurt the business reputation of the Plaintiff;

2. A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22^J September 2017 has harmed the business reputation of the Plaintiff;

3. A declaration that the lo Defendant’s Notices No. 13G/GOV/SEC/2018/ 12 and BG/GOV/SEC/ 2017/ 2-1 dated 6th August 2018 and 28th November 2017 respectively are an abuse of the Defendant’s discretionary powers contrary to Article 23 and Article 296 of the 1992 Constitution; 1. A declaration that the 2nd Defendant’s Notice No. SEC/PN/002/09/2017 dated 22m September 2017 is an abuse of the Defendant’s discretionary powers contrary to Article 21 and Article 296 of the 1992 Constitution.
Addressing concerns by their customers and the general public in Press Conference held at its office in East Legon, Nana Yaw Offei underscored Menzgold’s unblemished track record with regards to payment of extra values to traders in their 5years of operations.
It was also noted that per the shutdown of the gold trade Menzgold Ghana Limited cannot process any kind of termination on the Gold Vault Market until a healthy restoration is determined by the court.      

Meanwhile, the firebrand firm has assured its customers of paying back their investments following a payment schedule starting from Friday, September 28. 
Customers are therefore entreated to visit their branch on the date of collection as scheduled to avoid crowding of persons.

Ghana |Atinkaonline.com | Patrick Ofoe Nudzi     
          

 
The International Monetary Fund’s team which visited Ghana between 17th to 27th September to conduct the seventh review of Ghana’s Extended Credit Facility has published its preliminary findings on Ghana’s economic prospects.

In statement on the website of the IMF, the team observed that “growth prospects remain strong, supported by a robust oil and cocoa production. Inflation has remained in single-digits. S&P upgraded Ghana’s ratings from B- to B with a stable outlook in September 2018”

On the team’s observation of the cedi’s performance, the IMF stated that “Ghana has been affected by the volatile environment for emerging and frontiers markets, which has exerted pressure on the currency resulting in cedi depreciation”

In the heat of cedi depreciation debate, Vice President Dr. Mahamudu Bawumia at a policy summit in Tamale stated that “I will like to note again that over the last few months the US dollar has strengthened against many currencies globally: Argentina – 50.2%, Turkey -42%, South Africa – 19.2%, India – 11.2%, U.k – 4.29%, Ghana – 7%”

Dr. Bawumia argued that “in this context the exchange rate of the cedi to the US dollar remained relatively stable when compared with movements in other currencies against the US dollar. The reason for this is because of the relatively stronger fundamentals”

On the economy, both Dr. Bawumia and the IMF cited the recent Standard & Poor ratings to buttress their respective conclusions that Ghana’s economy is strong. The Vice President at his lecture stated “macroeconomic performance shows quite clearly that Ghana’s economic fundamentals are strong. This was confirmed last week by Standard and Poor’s (S&P) Global which upgraded Ghana’s sovereign credit rating from B- to B with a stable outlook, the first upgrade by S&P for Ghana in 10 years!” The IMF’s mission also concluded that Ghana’s economy “remains strong” arguing that “S&P upgraded Ghana’s ratings from B- to B with a stable outlook”

The IMF team’s assessment lends support to  Vice President Dr. Bawumia’s view that the economy is strong and the cedi’s marginal depreciation cannot be blamed on weak economic fundamentals.

Ghana | Atinkaonline.com 

Embattled gold dealership company, Menzgold, has sued the Securities and Exchange Commission (SEC) and the Bank of Ghana.

The company in its suit is seeking 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 wants the two institutions to publish an unqualified retraction and apology for the notices they published against the gold dealership company.

It also wants the court to tell both the central bank and SEC that it’s gold dealership business does not fall under any of their laws.
“A declaration that the plaintiff’s business does not fall within the present legislated scope of the Banks and Specialised Deposit Taking institutions Act 2016 (Act 930). A declaration that the plaintiff’s business does not fall within the present legislated scope of the Security Industry Act, 2016 (Act 929),” the company stated in its writ filed by lawyer Kwame Boafo Akuffo from the Kwame Akuffo & Co. Unlimited law firm.

Menzgold says it has decided to litigate the matter at the court because the regulatory bodies have threatened to continue with their action against it “unless restrained by an order of this court.”

Background

Menzgold Ghana Limited was asked to suspend its gold trading operations with the public by the Securities and Exchange Commission (SEC).

According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.

Securities and Exchange Commission

This, the SEC says, is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”

The company was however cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”

Although the company was adamant at first, it subsequently complied with the directive.

Menzgold hires UK law firm to battle SEC

Menzgold has also hired an international law firm, Baker & McKenzie LLP, as it prepares for a legal confrontation with the Securities and Exchange Commission over the issue.

In a letter to the SEC and the Minerals Commission sighted by citinewsroom.com, the London-based legal firm informed the two regulators that it had been contracted by the gold trading company to represent its interests.

It subsequently extended the suspension to September 28, 2018.

A statement from the company said its gold vault market product services will continue to be suspended to enable Menzgold reach a conclusion with the regulator.

Speaking to Citi News, Head of Communication at Menzgold Ghana Limited, George Quaye, said the latest postponement was due to an inconclusive meeting with the Securities and Exchange Commission.

We can’t pay dividends due to SEC’s action – Menzgold

Menzgold subsequenetly said it’s unable to pay its customers matured dividends on their gold investments due to the action taken against it by the SEC.

According to Menzgold, the SEC’s directive makes it impossible to make any payments.

“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,” Menzgold said in a statement dated September 25, 2018.

‘We’re still not getting vital information from Menzgold’ – SEC
But SEC indicated that it is yet to hear from Menzgold after it ordered the suspension of its gold trading business.

Speaking on the Citi Breakfast Show on Wednesday, Paul Ababio, Deputy Director-General at SEC, said that the flow of information from the gold dealership firm to enable the two parties reach a favourable consensus has not been smooth.

“We may have finished with our investigation but actual implementation of the results of that investigation is also subject to their willingness to cooperate because we requested for information in August; we have sat with their lawyers with a few back and forth, and we still haven’t received information from them. So if we have the information, one might say within a matter of weeks we should have some closure; then the question now becomes the action items arriving from that determination,” he added.

Citinewroom

Gold investment company, Menzgold Ghana  Company Limited has urged the public to ignore a fake press release informing customers that the Gold vault market product will remain shut till 19th December 2018.

A statement signed by the company’s Public Relations Officer, George Quaye, insisted that the said letter did not come from his outfit and gave the assurance that “ the company is still diligently working with all stakeholders to ensure that business returns to normalcy within the shortest possible time.

Below is the full statement: 

Ghana | Atinkaonline.com