Menzgold not ordered to halt dividend payments – SEC

The Securities and Exchange Commission (SEC) says it has not stopped gold dealership company, Menzgold Ghana Limited, from paying dividends to its gold vault market customers.

According to the SEC, its earlier order that Menzgold should shut down its gold vault market is only in relation to taking new deposits from customers.

Menzgold in a statement issued on Tuesday explained to its customers that it was unable to pay dividends because it was unable to generate revenues due to the SEC’s order.

Read also: Why we can't pay dividends - Menzgold

The statement said: “The gold collectibles offered for trade by patrons of our gold vault market product are subjected to our quality controls and traded for profit which is shared as extra-value with the product owner or trader. Any act, order or instruction, therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which extra values are charged and paid to those entitled.”

But in an interview with Accra-based City FM, the Deputy Director of the SEC, Mr Paul Ababio, said it is not interested in collapsing businesses; rather, “Our primary concern is the risk that this may become a potential liability to us because we also have the public’s interest at heart.”

“We are supportive of entrepreneurs…a few questions are what kind of promises are you making and do you have the ability to support those promises,” he said.