Menzgold extends suspension of gold vault market services

BY: Graphic.com.gh

Menzgold Ghana Limited has extended the six-day suspension of its gold vault market services to September 28, 2018.

The gold dealership entity halted its operations on Thursday, September 13, 2018 following a directive by the Securities and Exchange Commission (SEC) ordering the company to shut down its gold trading operations.

The company was, therefore, supposed to resume operations on Wednesday, September 19, 2018; but a statement issued on Tuesday said the extended reopening is to enable Menzgold “reach a useful conclusion with the Securities and Exchange Commission (SEC)”.

SEC last Wednesday ordered Menzgold to shut down its gold trading operation.

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According to SEC, the directive followed investigations conducted by the commission which found that Menzgold’s business, which involves the purchase and deposit of gold from the public and contracts issued with guaranteed returns with clients is a capital market activity, cannot be conducted without a valid licence issued by SEC.

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Meanwhile, a meeting scheduled for Tuesday between the SEC and Menzgold has been moved to Thursday.

According to the Commission, it is unable to proceed with the scheduled meeting without the information it requested from the company.

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Deputy Director General of the Commission, Paul Ababio, explained in a letter to Menzgold on Tuesday that the information requested "shall among other things form the basis for our mutual discussions towards an amicable resolution to the matter [claims Menzgold is breaching operational licence]."