The Ghana Investment Promotion Center (GIPC) has commenced investigations into the said allegations of fraud raised by the Securities and Exchange Commission (SEC) against CHY Century Heng Yue Group Limited, an international shopping site which originated from China.

In a recent press release, the Ghana Investment Promotion Center intimated that it has taken notice of a public interest warning issued by the Securities and Exchange Commission, informing the general public that CHY Century Heng Yue Group Limited/ Sairui E-commerce Ghana Limited has not been licensed to carry out any Capital Market Activity.

Therefore, as a State Agency responsible for the safety of the general public, the Ghana Investment Promotion Center has stated that it has begun investigating the matter and concerns issued against the Chinese firm’s operations to ascertain whether such allegations are valid and to know the depth of its effect in order to determine the appropriate sanctions to be meted.

According to Ghana Investment Promotion Center, the CHY Century Heng Yue Group Limited/ Sairui E-commerce Ghana Limited is also supposed to be registered with the Center, stating clearly its principal business activity without going contrary to them because it’s a foreign entity with a representation of its operations in the Ghanaian economy.

“For the avoidance of doubt, it must be noted that the GIPC Act 2013 (Act 865) under section 24 (1) mandates the GIPC to register all enterprises with foreign participation in Ghana”.

Consequently, allegations that CHY Century Heng Yue Group Limited/ Sairui E-commerce Ghana Limited is engaged in various activities specifically Capital Market activities including investing or trading for returns which are outside its registered objects at the GIPC, amounts to an offence under section 40 of the GIPC Act 2013(Act 865), the statement disclosed.

The Ghana Investment Promotion Center further asserted that even though it is mandated for foreign enterprises with representations in the country to register with its outfit in accordance to section 1(2) of Act 865, however, the registration of enterprises does not restrict compliance with the requirements of any other enactment or regulatory authority.

This implies that aside CHY Century Heng Yue Group Limited/ Sairui E-commerce Ghana Limited breaching the GIPC Act, it has also violated the Section 3 of the Securities Industry Act, 2016 (Act 929) and as such it is liable to face all the consequences and sanctions of its actions as the law prescribes if found guilty upon completion of the investigations.

Additionally, in the press statement, the Ghana Investment Promotion Center accentuated that Sairui E-Commerce Ghana Limited, the African chapter of the Chinese E-commerce firm with its head office in Accra, which was also mentioned in the Commission’s publication is not registered with its establishment and as such the Centre has no record of any activity by this particular enterprise.

The Ghana Investment Promotion Centre finally encouraged the general public to be a “vigilant and stay clear of any unlicensed investment schemes” in the intervening period and pledged its commitment to assist other relevant state agencies in their ongoing investigations and inform the general public on its findings and next course of action.