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The activities of Menzgold Ghana Limited, an investment company operating in Ghana has been hit with yet another setback following an announcement by the Securities and Exchange Commission (SEC) of Ghana that the company has not been licensed to operate in the capital markets.

In a notice published in the Monday, October 2 edition of the Daily Graphic newspaper, the SEC informed the General Public that Menzgold Ghana Limited has "neither been licensed nor their adverts sanctioned by the Securities and Exchange Commission (SEC) to carry out any activity in the Capital Market".

According to the notice, Menzgold is not a SEC-regulated entity because its operations contravene section 3 (c) of the Securities Industries Act, 2016 (Act 929) which deals with the registration, licensing, authorisation and regulation of entities in the securities market.

The SEC also reiterated its commitment to ensuring the protection of all investors who patronise the products/services offered by licensed Capital Market operators.

Menzgold not licensed to do banking - BoG

The announcement by the SEC follows on the heels of a similar statement by the Bank of Ghana (BoG), cautioning the general public against depositing money with Menzgold because it has not been licensed the company to take deposits.

The Second Deputy Governor of the Bank of Ghana, Dr Johnson Asiamah, said the company was licensed by the Minerals Commission to buy and sell gold but had veered off into accepting deposits from unsuspecting customers.

Many feared could have eventually become another financial sector scam following the experiences of DKM and God is Love Fun Club among others.

Dr Asiamah further cautioned that anyone transacting banking businesses with MenzGold will only do that at their own peril.