We can't pay dividends due to SEC’s action - Menzgold

We can't pay dividends due to SEC’s action - Menzgold

- Gold-trading firm, Menzgold Ghana Limited, has issued a statement saying the directive by the Securities and Exchange Commission makes it “impossible” to pay customers dividends

- Meanwhile, Deputy Director General of SEC, Paul Ababio says the regulator has not stopped the Menzgold from paying its existing customers their entitlements

Menzgold Ghana Limited has explained the reason why most customers are yet to be paid the dividends on their gold investments.

According to the company, it cannot make any payments due to the action taken against it by the Securities and Exchange Commission (SEC).

The gold dealership firm has been in the news in recent months following disagreements with the Bank of Ghana (BoG) regarding its operations.

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The latest development is that the SEC has asked the company to shut down its gold trading activities.

This led to brewing tension among some customers who stormed the East Legon branch of Menzgold following a delay in their dividend payments.

However, the gold dealership firm has now explained that the actions of SEC is the reason why it cannot make any payments to customers.

In a statement, the company said: “The gold collectibles offered for trade by patrons of our gold vault market product are subjected to our quality controls and traded for profit which is shared as extra value with the product owner or trader.

“Any act, order or instruction therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which extra values are charged and paid to those entitled.

The statement was released in response to comments by the Deputy Director General of the SEC, Paul Ababio, who suggested that their directive does not bar Menzgold from paying matured dividends to customers.

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The statement from Menzgold said the company “finds this position rather surprising as it shows a clear dearth in the SEC’s understanding of our gold vault market product and raises the question of basis upon which they decided to shut it down.”

It added: “The leadership of the firm will continue to engage with the relevant bodies to expedite the reimbursement of all entitlements.

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Source: Yen.com.gh

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