Pressure group Occupy Ghana is against the operations of Menzgold which it alleges is not licensed to operate.
The group believes with the way the company is running its operations, it is headed for saturation very soon.
They argue that for the type of business Menzgold is running, the company required three licenses, one each from the Minerals Commission, Securities and Exchange Commission and the Bank of Ghana.
Member of the group, Kwaku Segbefia speaking on an Accra based radio station and monitored by BestNewsGH.com said ‘’First of all if you will sell or trade in gold, you need the Minerals Commission license, if you will sell the gold in such a way that you will promise dividends, returns or profit, you need the Securities and Exchange Commission license, even gold storage and all that too, you require a Bank of Ghana license and so already, these are three licenses that you will need. So if you have one that you will trade in gold, the other one that requires that you give profit is under a different set of laws and you are supposed to obey those laws. If you don’t obey those laws, it means what you are doing is illegal’’.
Mr. Segbefia further noted that it is based on the above that even the company itself is finding it difficult to take the matter to court, adding that the case will be struck down.
Menzgold Ghana a fortnight ago had brushes the Securities and Exchange Commission when the state agency asked it to close down parts of is operations, accusing it of not having the legal backing run such business.
Scores of the company’s investors thronged the company’s headquarters in what industry watchers said was a panic withdrawal of some sort.
The company rolled up its sleeves and gave an indication that it was seeking legal redress and went further to hire prominent UK law firm, Baker & McKenzie to fight its case in court.
Before the legal tussle could begin, news filtered in late last week that the company had sorted everything out with the Securities and Exchange Commission and this announcement was backed by pictures of the operator of Menzgold, Nana Appiah Mensah and officials of the Securities and Exchange Commission.