The Securities and Exchange Commission (SEC) has written to gold-trading firm, Menzgold Ghana Company, to stop forthwith, all investment trading in gold without licence.
In the 3 September 2018 letter signed by Deputy Director General, Paul Ababio, the SEC said: “In September 2017, the SEC issued a public notice indicating that it does not regulate Menzgold. The SEC began further investigations into the activities of Menzgold in July 2018. In August 2018, the Commission called for an inter-sectoral meeting that involved the Minerals Commission, Bank of Ghana and the Securities and Exchange Commission. The Meeting concluded that it is evident Menzgold’s activities appear to go beyond the mandate authorised in its licence”.
The SEC said: “It is our expectation that being your licencee, MINCOM, would call Menzgold to order and direct it to conduct its business in accordance with the licence issued to it by MINCOM”.
It follows several warnings from the Bank of Ghana to the local gold firm, to stop trading in gold without licence.
The central bank, on 7 August 2018, issued a public notice, the fourth of many, that it was in discussions with relevant regulatory authorities to sanction Menzgold for engaging in “solicitation, receipt of money or investment and the payment of dividends or returns to its clients” without a licence to do so.