Menzgold tells PMMC to stay off after telling BoG to shut up

Menzgold Company Limited has disputed claims by the Precious Minerals Marketing Company (PMMC), that it is violating the law in its trade of gold in the country.

Counsel for the company, Kwame Akufo, told Joy News there are records to show that in August 2014, then Menzbank applied for a gold trading license, rubbishing claims they are operating without a license.

“The license was granted after monies and necessary registrations had been paid for. The license was from September 4, 2014, to September 4, 2015. Subsequent to the expiry of the license, my client applied for a renewal which was granted on November 3, 2015, to expire on November 2, 2016.

“There has never been an occasion where the license issued to Menzgold Ghana Limited was revoked by any governmental entity,” he said.

According to Mr Akufo, from 2016, Menzgold did not have to renew its license anymore because the PMMC became an independent assayer.

The lawyer’s comment comes after the Managing Director of PMMC, Kwadwo Opare Hammond told Joy News that although the company was granted a license in 2014, it has long been revoked.

“The Minerals Commission would usually give you the license and there is a small clause that says ‘you buy gold for export’ and I don’t know if that is what they [Menzgold] are relying on to do this.

“If that is what they are relying on, then they are doing the wrong thing. One is supposed to buy and package the raw gold before exporting it,” he said.

Mr Opare Hammond explained that even with the exports, no individual or company can export gold without working with PMMC.

He also described as unrealistic the 7-10% interests being paid by Menzgold Company limited to its customers.

But Mr Akuffo said the statement of revocation is not supported by any record is completely defamatory to Menzgold.

He challenged Mr Opare Hammond to produce the revocation document as well as render an unqualified apology.

Regarding PMMC MD’s comment on the percentages given to patrons of the gold exporting company, the lawyer said that is an issue entirely between Menzgold and its customers.

“None of the customers has made any complaint to Mr Opare Hammond and he is not qualified to comment on the econometrics of the transactions.

“The Minerals Commission has duly given our client the license to deal with the export, what the PMMC does presently under the legal framework is to become the independent assayer of gold that leaves the republic,” he said.

According to him, “nobody has a Commodities Trading Act in the country…my clients are engaged in commodities trading that is why the Bank of Ghana for example in 2012 has issued a notice and said don’t deal with them.”

“But until six years the BoG has never been able to say anywhere in this republic that what they are doing is illegal.”

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