Menzgold resumes dividend payments; Sept 12 investments excluded

Menzgold will resume payment of dividends accrued on its trouble gold trading business on Friday, but says investments on or after September 12 will not be covered.

Making the announcement at a press briefing Thursday, CEO of the company, Nana Yaw Osei, said a payment schedule will also be released to make the payment of dividends happen without chaos and overcrowding.

The exclusion of the September 12 investments, the company suggests, is because that was the day the Security and Exchanges Commission (SEC) asked the company to shut down over an alleged breach of licencing and other regulations.

“As a result of the shutdown of the gold trade business, the firm cannot process any kind of termination on the gold vault market until a healthy restoration is determined by the courts since we have filed a suit already,”, Nana Yaw Osei said.

Suit

Menzgold has dragged the Bank of Ghana and the Securities and Exchange Commission to court because the two statutory institutions are hurting its business.

In the suit, the gold dealers asking the court to slap aggravated damages on the two institutions.

The company insists the notices given by BoG and SEC have been nothing more than an abuse of office by the two institutions and which have caused considerable reputational damage to the company. The plaintiff wants an order of the court to restrain the two bodies from unnecessarily interfering in its business.

Source: Myjoyonline.com