Nana Appiah Mensah
Menzgold Ghana Limited, the private company on ‘collision course’ with state authorities in the gold vault market has appointed external solicitors to fight its case.
The new solicitors, Baker McKenzie have written to the Securities and Exchange Commission (SEC) and the Minerals Commission insisting that Menzgold’s decision to temporarily suspend its activities is not an admission of any wrongdoing.
According to Michael Doran, a partner of Baker McKenzie based in London, United Kingdom, Menzgold suspended its operation because they want the ‘technical legal issues’ to be resolved.
“We have been engaged by Menzgold Ghana Limited (“Menzgold” or the “Company” to represent it in this matter. The Company acknowledged receipt of the SEC Communications and will respond in the next several days setting out why it strongly believes that it is fully in compliance with all aspects of the laws of Ghana including, without limitation, the Securities Industry Act 2016.”
The letter further said “the Company will, as a demonstration of good faith and willingness to fully cooperate with the SEC while this matter is resolved, desist from these specific activities outlined in the SEC Communications,” adding “this voluntary and temporary cessation of these alleged activities is without prejudice to the Company’s legal position nor any acknowledgement of wrongdoing in any way.”
“It is a simple gesture of good faith to give all pause for consideration of the technical legal issues and to allow its lawyers to fully engage with the SEC on this matter,” it added.
Last week, Menzgold temporarily halted its collectables and any new business related to its gold vault market with immediate effect due to the directive from the Securities and Exchange Commission (SEC).
A press release issued by management of the company on Thursday, September 13, 2018, said “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 temporary halt on all extra value payments and any new business related to our gold vault market.”
It explained that “the halt takes effect from Thursday, 13th September and will be in place for six 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 and we would, as usual, count on your (clients) understanding and cooperation during this period. Any inconvenience caused is deeply regretted.”
A DAILY GUIDE Report