The Deputy Minister for Finance, Charles Adu Boahen is reported to have said that it is over for Menzgold and there is no way it will be allowed to operate in Ghana again.
According to the report, Mr. Charles Adu Boahen was speaking at JoyBusiness Financial Service Forum themed “The Changing Tide of Ghana’s Financial Service Sector: The Cause, The Cost, the Clean up” when the issue of Menzgold came up.
Answering a question on the possibility of Menzgold working operating again and it’s responsibilities to pay customers their principal, the Deputy Finance Minister of Ghana said:
“With the Menzgold issue, I think it is clear that the end is here; He is done”. Menzgold’s activities came under the SEC regulations and what they were doing was considered to be trading and they did not have a license to trade so in the current capacity of what they were doing their license has been revoked and they have not been able to provide any evidence why they should be reinstated.
“So as far as I’m concerned from what I understand from the SEC they are not allowed or they do not have the license to trade. However, nothing prevents them from paying depositors back.”
Menzgold was ordered to shut down by the Securities and Exchange Commission of Ghana (SEC) for violating operational permit. In the letter dated 7th September 2018 and addressed to Nana Appiah Mensah, the CEO Menzgold and signed by the Deputy Director General, Paul Ababio partly stated:
“In September 2017, the SEC issued a public notice indicating that it does not regulate Menzgold. The SEC began to further investigations into the activities of Menzgold in July 2018. In August 2018, the Commission called for an inter-sectoral meeting that involved the Minerals Commission, Bank of Ghana and the Securities and Exchange Commission. The Meeting concluded that it is evident Menzgold’s activities appear to go beyond the mandate authorized in its license”.
But on the 27th of September, Menzgold sued the Securities and Exchanges Commission and the Bank of Ghana for unnecessary interference in its affairs. The court is yet to sit on the case.