If Menzgold Is Trading In Gold Then It Is Flouting Ghanaian Laws

It has been a torrid week for gold dealership firm, Menzgold Ghana Limited with regards to regulators. Earlier in the week, Menzgold's operations were rocked with a public notice from the Bank of Ghana warning the public not to deal with the company.

The owner of Menzgold, Nana Appiah Mensah described the BoG notice which stated that his company is breaching section 6 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) as a joke and a diversionary tactic.

The BoG last year issued statement cautioning the general public against depositing money with Menzgold because it has not been licensed the firm to take deposits. The Securities and Exchange Commission (SEC) of Ghana also announced that the company has not been licensed to operate in the capital markets.

Nana Mensah is due to be questioned by the Economic and Organised Crime Office (EOCO) on Friday, August 17 but even before that the Precious Minerals Marketing Company (PMMC) has said his company is flouting the laws of the land because it has no license to trade gold.

The Managing Director of the PMMC which operates as Government’s assayer with the sole mandate of assaying all gold which leaves the country said Menzgold's license to trade in gold granted in 2014 was revoked because of the manner of their operations.

The PMMC MD, Kwadwo Opare Hammond, told myjoyonline that if Menzgold is currently trading in gold then it is flouting Ghanaian laws.

He said: “The Minerals Commission would usually give you the license and there is a small clause that says ‘you buy gold for export’ and I don’t know if that is what they[Menzgold] are relying on to do this.

"Our records indicate that in the year 2014 they came for a license to buy and sell gold i.e. to trade in gold. But when they took the license from us it came to our attention that they were doing this kind of business in terms of asking people to come and invest in gold and get profit or dividend or interest, whatever they call it.