Menzgold Accounts Must Be Audited – Franklin Cudjoe
President of policy think tank, IMANI Africa, Franklin Cudjoe wants the accounts of gold dealing company, Menzgold audited in the wake of its troubles with the Securities and Exchange Commission (SEC).
“I think their books ought to be audited and we should know. If their books have been audited we should know,” he said on Citi FM/Citi TV's news analysis programme, The Big Issue on Saturday.
It emerged last Wednesday that the SEC had ordered Menzgold to shut down its gold trading operations with the public.
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public and issuing contracts with guaranteed returns for clients without a valid license.
The SEC's directives and the responses from the company have received mixed public reactions with some applauding the regulator for its actions, while others have described it as a witch-hunt.
According to the SEC, Menzgold's actions are in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”
The company has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
After initially indicating that it was still open for business, the company has eventually suspended any new business related to its Gold vault market temporarily.
Menzgold hires UK law firm to battle SEC
Menzgold has also hired an international law firm, Baker & McKenzie LLP , as it prepares for a legal confrontation with the Securities and Exchange Commission over the issue.
In a letter to the SEC and the Minerals Commission sighted by citinewsroom.com, the London-based legal firm informed the two regulators that it had been contracted by the gold trading company to represent its interests.
Cool heads needed to solve the impasse
Franklin Cudjoe on The Big Issue said the issues must be dealt with dispassionately.
“While we are at it, let's not moralize the issue. I think it's a regulatory issue that ought to be dealt with the reason for which I will think SEC and the BoG seem not to necessarily be in tandem with what is happening. I think they should just sit down and solve this matter rather than some people leaking statements here and there, it doesn't really auger well,” he added.