Lawyers for Menzgold have said their client is unable to comply with the shut down directive by the Securities and Exchange Commission (SEC) because their business does not fall under their regulatory regime.

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 with clients, without a valid license from the Commission. The business, according to SEC is in contravention of “section 109 of Act 929 with consequences under section 2016 (I) of the same Act.”

It follows several warnings from the Bank of Ghana to the local gold firm, to stop trading in gold without licence.

Menzgold in its response accused the regulator of bad faith.

”This needless leaks believed to be coming from the Securities and Exchange Commission or the Bank of Ghana, is in a very bad faith and distasteful; as it defeats our confidence in the bodies and an upfront to cooperation of which we totally condemn.

“We find its rather very interesting that, the same note from the SEC that seems to forbid new transactions on grounds on illegality, is directing the promotion of existing ones by the same letter. A clear contradiction, ill-principled and a shot in the foot.

“As a law abiding organization, we have referred the matter to our lawyers and rest assured, the right action shall be taken,” Menzgold said in a statement.

In a further action, the lawyers of the firm in a statement Wednesday said their client is law abiding and therefore cannot stop their business on the orders of SEC.

“We are instructed to respectfully inform you that our client’s business module, which is essentially that of the sale of gold collectibles, is not one that falls within your regulatory regime. Please be informed that our client is not issuing any ‘tradable Note’, as you erroneously state in your letter of 7 September 2018.

“Under the circumstances, we are instructed to inform you that our client finds your purported directive to shut down or suspend its operations untenable, and is unable to comply with the terms of your letter dated 7 September 2018, especially considering the contagion and effect on the market and its customers”.