The Chairman of the Finance Committee of Parliament Mark Assibey-Yeboah said on Friday that the House cannot intervene in the ongoing standoff between gold dealership firm Menzgold and the Securities and Exchange Commission (SEC).
SEC in September ordered the gold trading firm, to suspend its operations with the public with immediate effect.
In a September 7 letter, SEC said after thoroughly investigating the activities of Menzgold, it had found out, the firm did not have the license to trade in gold collectibles from the public.
The aspect of Menzgold’s business involving purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by it which contravenes the law.
Speaking to the media after the leadership of Menzgold petitioned Parliament over its inability to pay its clients as a result of the directive by SEC, Mr Assibey-Yeboah said the Finance Committee warned the gold trading firm about the illegality of its operations.
“The government warned those who put their monies there… and as late as February 2017 Menzgold came to the Finance Committee of Parliament and then we told them what they are doing was illegal.
“At that point, if anyone wanted to take out their funds they would have been able to do so. I think they are crying over spilt milk. People are comparing this one to DKM. DKM was regulated by the Central Bank.
“So in a sense, it was like one of the seven banks that have gone under water. But Menzgold was not regulated by SEC neither was it regulated by the Bank of Ghana,” he said.
Menzgold in its petition is asking for “a comprehensive payment plan to pay off completely all customers who wish to discontinue their trading of gold collectibles.”
