The legal advisor of Menzgold, lawyer Kwame Akuffo is raising questions about the fairness of the Securities and Exchange Commission (SEC) in their suspension of trading directive on the gold dealership firm insisting is not only surprising but also premature.
SEC is offering the meet Menzgold on Tuesday to iron out the knotty points over a regulatory stand-off that is threatening to disrupt the business and put the investment of customers at risk.
SEC last month ordered Menzgold to furnish it with certain documents to ascertain the operations of the gold dealership firm by the deadline of Friday, September 14, 2018.
One week before the deadline, SEC issued another directive asking Menzgold to halt its gold trading activities even though the deadline set by SEC itself had not elapsed.
Kwame Akuffo says it appears SEC, having taken the decision to suspend Menzgold’s trading activities, is now asking for the information that should have guided its decision to suspend or not.
“You will recall that pursuant to your letter dated September 7, 2018, in which you took a decision to shut down our Client’s business, we wrote to you requesting for a meeting to resolve the issues arising therefrom.
“It is instructive to note, that in paragraph 4 of your letter dated September 7, 2018, you stated;
“Subsequent to the visit by the SEC officials, a request for specific detailed information was made and Menzgold has through its Lawyers agreed to provide the necessary information requested by SEC within fourteen days.
“The provision of the information however does not make that aspect of Menzgold’s operations any less of an illegality under Act 929 as well as a threat to unsuspecting and uninformed investors.
“Indeed, you were absolutely clear that the said “information” was completely irrelevant for purposes of your decision. It was without receipt of this “information” that you proceeded to order a complete shut down.
“It is therefore a matter of surprise that we are now being told that we are to furnish you with “information” that you did not consider relevant and above all were emphatic that the said “information” would have had no bearing on your decision to shut down our Client’ business.
“It is settled practice that decision makers such as administrative bodies and the Courts which take decisions affecting the rights of others do not as a general rule receive evidence after a decision has been given. On the facts of this case, you have specifically informed us that the “information” does not matter.
“Your letter therefore raises fundamental questions as to the fairness of the decision you took on September 7, 2018 as well as whether same was premature. Under the circumstances, it is difficult for us to reconcile the contents of your letters dated September 7,2018 and September 13,2018.”
Kwame Akuffo concluded his protest however, on an unconditional willingness to attend the Tuesday meeting.