Menzgold halts gold vault market temporarily

Menzgold Ghana Limited has placed a temporal halt on operations of its gold vault market.

The halt, which takes effect from Thursday, September 13, will be in place for six days.

This comes on the back of a directive by the Securities and Exchange Commission (SEC) ordering the gold investment company to shut down its gold trading operations.

According to SEC, the directive to Menzgold followed investigations conducted by the commission which found that Menzgold’s business, which involves the purchase and deposit of gold from the public and contracts issued with guaranteed returns with clients is a capital market activity, cannot be conducted without a valid licence issued by SEC.

Menzgold “unable to comply with” directive to shut down – Lawyers

However, the management of the company had earlier defied the order and issued a statement Wednesday telling its customers that they were still in business.

But another statement issued later on Wednesday said management of the company had decided to halt the operations of its gold vault market temporarily to bring to the issues raised by SEC.

Menzgold defying SEC order to suspend investment operations

“This decision, though very unfavourable to us has been informed by our commitment to the rule of law, absolute respect to state agents, agencies and total submission to the state,” the statement explained.

According to the management, it is hopeful that within the six days it would have resolved all issues relating to the gold vault market.

“We are certain this halt will not go beyond the 19^th day of September, 2018,” the statement said.