An Accra High Court has dismissed a suit brought by Menzgold challenging the regulatory powers of the Securities and Exchange Commission (SEC), which ordered the company to shut down an illegal operation.
The court, presided over by Mrs Justice Akua Amoah, threw out the suit following a preliminary legal objection raised by SEC and BoG.
BoG and SEC had argued that Menzgold failed to exhaust all the regulatory mechanism for redress before going to court.The court agreed with the two regulatory bodies and dismiss the suit.
In the September 2017 suit, Menzgold asked the court to declare that its “business does not fall within the present legislated scope of the Banks and Specialized Taking Institutions Act 2016 (930).”
The gold dealers also wanted a declaration that the directives by the two institutions were arbitrary, capricious and contrary to Article 23 and Article 296 of the 1992 Constitution.
Since then, the company has requested for an order setting aside the directives by the two institutions and for them to retract and apologise for the same.
Menzgold after the September 2017 order to shut down its gold trading, requested for sit down with SEC. But the regulator set some pre-conditions for the meeting asking Menzgold to produce some documents for the meeting.Menzgold rejected the conditions and went to court.