The Securities and Exchange Commission (SEC) says it has not stopped Menzgold from paying its existing clients dividends on the troubled Gold Vault Market investment service, but the gold dealership disagrees.
Deputy Director-General of SEC, Paul Ababio, in an interview on Joy News Prime says the Commission’s instruction was for Menzgold “to halt doing new business”.
However, Menzgold says it is unable to advance dividend payments on its Gold Vault Market Product due to the temporary suspension of its business by the SEC.
Menzgold, in a release on Tuesday, took an issue with the SEC for saying that although the Commission had suspended its operations temporarily, it has not prevented the gold dealership from making matured interests on investments.
According to the gold trading firm, Paul Ababio’s comments, published in the video link below, are “surprising”.
“We find this position rather surprising as it shows a clear dearth in the SEC’s understanding of our Gold Vault Market product and raises the question of the basis upon which they decided to shut it down.
“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,” Menzgold explained.
Some clients of Menzgold have expressed disapproval for the suspension in the payment of their dividends, prompting fears that the company may just be folding up and is hiding behind the SEC directive to temporarily suspend business.
Earlier this month, the SEC ordered the gold trading firm to suspend its operations with the public pending a clarification about the legality of their business model.
Menzgold has, meanwhile, assured, its customers that their investments are safe.
“The leadership of the firm will continue to engage with the relevant bodies to expedite the reimbursement of all entitlements,” Menzgold said in the release published below.
25TH September 2018 MEDIA RELEASE
RE: NOTICE TO SUSPEND TRADING WITHOUT LICENSE
On an interview on Joy News TV earlier this evening, Deputy Director General of the Securities and Exchange Commission, Paul Ababio, indicated that, they hadn’t stopped MenzGold Ghana from paying matured extra values to customers and that, the directive was to desist from establishing new contracts.
We find this position rather surprising as it shows a clear dearth in the SEC’s understanding of our Gold Vault Market product and raises the question of the basis upon which they decided to shut it down.
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.
Thought provoking as these ambiguities on the part of the SEC may be, Menzgold Ghana is still committed to ensuring that business operations return to normalcy as soon as possible as the firm is deeply saddened by the social and economic inconveniences this decision and directive of the SEC has caused our Customers and the organization.
Menzgold Ghana assures all customers and patrons that all Gold trades are safe. The leadership of the firm will continue to engage with the relevant bodies to expedite the reimbursement of all entitlements.
Signed
Management, MENZGOLD
