Gold trading firm Menzgold has announced it has temporary ceased payment of dividend to its customers in order to resolve the impasse with the state.
The move comes after the Securities and Exchange Commission (SEC) ordered them to stop dividend payment.
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients, without a valid license from the Commission. The business, according to SEC is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
It follows several warnings from the Bank of Ghana to the local gold firm, to stop trading in gold without licence.
Lawyers of the company have however said their client cannot comply with the directive from SEC.
In a statement from Menzgold Thursday, the firm said it has had to take the interim measure in order to address the impasse with the state regulator.
“Following the notice from the Securities and Exchange Commission of Ghana issued on the 7th day of September, 2018, the Management of Menzgold Ghana limited in its bid to bring some finality to the issues once and for all has decided to place a temporal halt on all extra value payments and any new business related to our Gold Vault Market.
“The halt takes effect from Thursday 13th September and will be in place for 6 days, by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out.
We are certain this halt would not go beyond the 19th day of September, 2018.
“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 said.