SEC decision to shut down Menzgold was premature – Company’s lawyer

Lawyer for embattled gold marketing firm, Menzgold Ghana Limited says the decision by the Securities and Exchanges Commission (SEC) to shut down the company was unfair and premature.

In a letter to the Commission Friday, Kwame Boafo Akuffo argued that in the letter of Sept 7, in which SEC ordered the company to shut down, the information required leading to the shutdown was “irrelevant.”

In the said letter, SEC said “Subsequent to the visit by the SEC officials, a request for specific detailed information was made and Menzgold has through its lawyers agreed to provide the necessary information requested by the SEC within fourteen days. The provision of the information, however, does not make that aspect of Menzgold’s operations any less of an illegality under Act 929 as well as a threat to unsuspecting and uninformed investors…”

Subsequently, Menzgold shut down its operations on Wednesday after it was hit by a number of panic withdrawals.

Following from the statement Menzgold condemned what it describes as a needless leak of a meeting it had with the Commission.

The gold trading company said the leak to the media of a confidential meeting “to say the least, in very bad faith and distasteful; as it defeats our confidence in the body and an affront to cooperation. We totally condemn it!”

Stressing on its disappointment with SEC Friday, counsel for the company questioned the basis upon which their company was ordered to shut down.

According to the Mr Boafo Akuffo, SEC made it “absolutely clear that the said “information” completely was irrelevant for purposes of your decision. It was without receipt of this “information” that you proceeded to order a complete shut down.”

Menzgold added they are, therefore, surprised that they are now being told they are to furnish SEC “information” that it did not earlier consider relevant when it had been empathic that the said “information” would have had no bearing on its decision to shut down the company.

Although, on Thursday, September 13, Menzgold had said it would have a sit down with the Commission, it stated that it is difficult for them to reconcile the contents of the letters dated September 7 and 13.

“Be that it may, we are willing to attend a meeting with you at 2 pm on September 18, without any conditions attached to same,” it concluded.

Source: Myjoyonline.com