Court throws out Menzgold suit against SEC and BoG

The Accra High Court has dismissed a suit filed by gold firm, Menzgold Ghana Limited against the Security and Exchange Commission (SEC) and the Bank of Ghana (BoG).

The court, presided over by Mrs Justice Akua Amoah, threw out the suit following a preliminary legal objection raised by SEC and BoG.

BoG and SEC had argued that Menzgold failed to exhaust all the regulatory mechanism for redress before going to court.

The court agreed with the two regulatory bodies and dismiss the suit.

Menzgold suit

Menzgold dragged SEC and the BoG to court in September, 2018 after its licence was revoked by SEC.

The suit filed at the Commercial Division of the Accra High Court, described the two regulators as indulging in activities that were “harmful” to its operations.

It claimed that certain notices issued by the BoG and the SEC in relation to its operations were “arbitrary, capricious and contrary to articles 23 and 296 of the 1992 Constitution”.

Menzgold, therefore, wanted an order setting aside the SEC’s directive of September 7, 2018 for the company to suspend its operations.

It also wanted among other reliefs, a declaration from the court that its activities did not fall under the scope of the BoG or the SEC’s regulations.

Other reliefs included “an order of perpetual injunction to restrain the BoG and the SEC from interfering with its business activities or further acts by publishing any derogatory notices’’.

Source: Graphic online