MenzGold scandal: Bank of Ghana, SEC failed Ghanaians – Gomoa West MP

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Member of Parliament for Gomoa West, Alexander Abban, has expressed his disappointment in Ghana’s Central Bank and the Securities and Exchange Commission (SEC) over the Menzgold brouhaha.  

On September 12, 2018, the SEC first told Menzgold to stop gold trading operations with the public.

According to the SEC, Menzgold had been dealing in the purchase and deposit of gold collectables from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission.

In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that, the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.

The statement explained that interactions with representatives of Menzgold 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.

The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.

Speaking to Kaakyire Ofori Ayim on Atinka AM Drive, Member of Parliament for Gomoa West, Alexander Abban explained that SEC after the letter, should have found other ways to stop MenzGold’s operation.

“Let’s say they placed an advertisement in the dailies, how many of our people in the rural areas read the dailies and even have the means to listen to radio. SEC should have found ways to forcefully stop MenzGold operations,” he added.

According to him, SEC and BoG were trying to tread on cautious grounds to prevent MenzGold from taking court actions against them. “They however failed us in the process”, he noted.

Ghana | | Vivian Adu Boatemaa