Menzgold was planning a massive global expansion that could have resulted in the Ghanaian company being listed on the Canadian Stock Exchange within some years, the CEO of the company Nana Appiah Mensah has revealed.
The astute businessman revealed that the gold trading firm had secured a big contract in Switzerland that would have opened the doors for Menzgold to explore huge investment opportunities within the Swiss banking sector.
Further opportunities for growth were also being lined in London before a stand-off with the Securities Exchange Commission (SEC) and the Bank of Ghana (BoG) disrupted their operations.
Menzgold had operated in Ghana for five years with an unblemished record before BoG and SEC claimed interfered with its operations claiming it does not have the necessary papers to carry out its business.
Eventually, Menzgold on September 27, 2018, hauled the Securities and Exchange Commission (SEC) and the Bank of Ghana (BoG) to court over what it deemed as an unfair treatment being meted out to the company.
Menzgold in its suit is seeking an order from the court to halt these two state institutions from interfering in its business and operations.
The gold dealership company is also asking the court to stop the BoG and the SEC from further publishing what it described as “derogatory notices” against its business.
Menzgold’s CEO says the actions of the SEC and BOG disrupted their plans of some major global moves that could have made the company a global gold investment firm.
”Now that we have been able to establish our international structures and taking off but for the unforeseen circumstances,” Mensah revealed in an interview on Monday.
“We had planned that before the end of the year (2018) we were to supply two tons of gold to a strategic contact in Switzerland which could have opened doors to do business with the Swiss Bank.
”That could have also created an opportunity to get onto the London Bullion Market Association.
”From there, our company would have listed on the Canadian Stock Exchange or Toronto Stock Exchange and the trickle-down effect would have been positive.”
Menzgold will resume operations on Monday when it starts migrating customers to an online platform to ensure continuous and smooth operations to investors.
The digital migration also ensures that they will not be bound by the regulatory issues that brought the halt in the operations of the company in Ghana.
Menzgold will start paying 15% of principal of the investors who are keen on terminating their contract from Friday as it seeks to stabilize its operations.
It would be recalled that the Securities Exchange Commission (SEC) in September 2018 ordered Menzgold Ghana Limited to suspend its gold trading operations with the public.
The directive, according to SEC, was based its claim that Menzgold had been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns with clients without a valid licence from the Commission.
The move, SEC explained, was in contravention of “Section 109 of Act 929 with consequences under Section 2016 (I) of the same Act.”
The company however says it does not accept deposits from clients insisting its operations are legal.