The directive to Menzgold Ghana Limited to shut down its operations with immediate effect cannot hold, the company’s lawyers tell the Security and Exchange Commission (SEC) that issued the order.
Kwame Akuffo and Co Unlimited, solicitors for Menzgold, explained that their client cannot comply with the directive because what it does do not fall within the regulatory regime of SEC.
The Commission had said evaluation of Menzgold’s documentations shows that the company does not have the licences to trade in gold, and that, its operations are in breach of Act 929 “as well as a threat to unsuspecting and uninformed investors”.
The suspension notice dated September 7, warned that SEC will be compelled to take “measures under the law” to enforce the directive if Menzgold fails to comply.
But the letter from Menzgold’s lawyers to Security and Exchange Commission clearly stated that the client’s business module is essentially that of the sale of gold collectibles.
“Please be informed that our Client is not issuing any ‘tradable Note’ as you erroneously state in your letter of 7th September, 2018.
“…Again, our Client reiterates that it is not engaged in Capital Market activities, and neither does it issue gold-backed depository notes.”
It however noted that Menzgold was willing to respond to the queries raised in SEC’s letter of 27 August 2018, but requested that it is furnished with the provisions of the Securities and Industries Law that its business and objects fit into and what it requires for the purposes of a License if any.
“Under the circumstances, we are instructed to inform you that our client finds your purported directive to shut down or suspend its operations untenable and is unable to comply with the terms of your letter dated 7th September, 2018 especially considering the contagion and the effect on the market and its Customers.”
Source: 3news.com | Ghana
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