The Securities and Exchange Commission (SEC) has ordered Menzgold Company Ltd to shut down the business of trading in gold collectibles with guaranteed returns to clients, with immediate effect.
This follows an investigation conducted by the SEC , including paying a working visit to the company.
A letter of notice to the CEO of Menzgold has indicated that interactions with Mr. Offei, Commercial Manager and Rev. Derek Akubia, advisor to the CEO, confirmed to SEC the view that the aspect of Menzgold’s business which involves the purchase/deposit of gold collectibles from the public and contracts issued with guaranteed returns with clients, is a capital markets activity (issuance of gold-backed depository notes to the public) under Act 929 without a valid licence issued by SEC contrary to section 109 of Act 929, with consequences under section 206 (l) of the same Act.
The SEC has authorised that no new contracts should be created and all advertising of the investment business halted with immediate effect.
According to the letter, failure to comply with the directive will lead to the SEC employing other relevant measures under the law to enforce compliance.
The SEC indicates that the directive does not preclude Mr. Appiah Mensah from continuing his other businesses of assaying, purchasing gold from small scale miners, and export of gold.