Gold dealership, Menzgold, has extended a six-day suspension of its Gold Vault Market services.
The embattled firm has now set September 28, 2018 to resume the controversial service.
In a release Tuesday, Menzgold has informed its customers that “Following our correspondence with the Securities and Exchange Commission (SEC), we regret to advise that the Gold Vault Market product services will continue to be suspended until the 28th September, 2018 to enable us reach a useful conclusion with the Securities and Exchange Commission (SEC).”
Menzgold announced last Thursday that it has temporarily halted its collectables and any new business related to its gold vault market.
The company explained at the time that the halt of the service, also called extra value payments, will resume on September 19, “by which time we believe all pending issues related to the Gold Vault Market Product would have been ironed out.”
The SEC and the Bank of Ghana are fighting the company over claims it is operating a business not covered by its operating licence.
Menzgold insists its services do not breach any regulation.
Meanwhile, a meeting scheduled for Tuesday between the SEC and Menzgold has been moved to Thursday.
According to the Commission, it is unable to proceed with the scheduled meeting without the information it requested from the company.
Deputy Director General of the Commission, Paul Ababio, explained in a letter to Menzgold on Tuesday that the information requested “shall among other things form the basis for our mutual discussions towards an amicable resolution to the matter [claims Menzgold is breaching operational licence].”
Menzgold was forced to halt its gold vault market services after SEC directed the company to do so.
The company had earlier vowed to defy the SEC directive but beat a retreat later.
Lawyer for Menzgold, Kwame Boafo Akufo, later requested the meeting with the SEC over the directive to shut down.
Although the company is licenced primarily to purchase gold from small-scale miners for export, it runs an investment service that allows investors to get high returns on cash deposited with the firm.
Some have called the service a financial innovation, others say it is an illegality that resembles a Ponzi Scheme.