The Securities and Exchange Commission, Ghana has in a letter copied to Nana Appiah Mensah, CEO of Menzgold and Minerals Commission asked MenzGold to “shutdown immediately, the business of trading in gold collectibles with guaranteed returns to clients”.
In a letter dated September 7, 2018, the Securities and Exchange Commission reveals interactions with one 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 purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.”
“MenzGold however is not precluded from continuing its other business of assaying, purchasing gold from small scale miners, and export of gold,” the document reads.
SEC also ordered that no new contracts of such should be created and all advertisement on same should cease.
It added that failure to comply would force SEC to enforce the directive through alternative means.