KUCHING: Local investors in the troubled Genneva Gold Sdn Bhd have been told that they will be issued a letter from the company to update them on the latest development after a statement from Bank Negara Malaysia (BNM) was published yesterday.
According to a spokesman, they were informed that since the case was still under investigation, they should not believe the amount published yesterday as accurate.
BNM’s report yesterday revealed that more than 8,000 customers of Genneva Malaysia Sdn Bhd who paid for gold had yet to receive their bullions amounting to more than 4,000 kilogrammes.
A joint statement from BNM, Police and Ministry of Domestic Trade, Cooperatives and Consumerism issued yesterday also revealed that there were customers who had surrendered their gold to the company but had yet to receive their cash reimbursement amounting to more than RM80 million.
“The actual operations of the company by selling gold at 20 to 25 per cent higher than the market price, paying returns of about two per cent to three per cent per month to customers and buying back the gold from customers at the initial purchase price have not been a sustainable venture,” the statement said.
It also said initial forensic accounting had uncovered that the company suffered considerable losses this year and had liabilities exceeding 10 times its assets.
“In this regard, the cash flow for the company to sustain its operations has relied heavily on the monies collected from new customers,” the statement added.
Genneva was raided by Bank Negara, the police, Ministry of Domestic Trade, Cooperatives and Consumerism and the Companies Commission of Malaysia on Oct 2.
The statement also said the various enforcement agencies had received numerous appeals from affected parties in respect of Genneva for the release of RM99.8 million in cash frozen and 126 kg of gold seized.
“Such monies and gold are required for the investigations and will only be dealt with at the direction of the courts.
“Further information will be provided as the investigation progresses. Every effort is being made to expedite the investigations to facilitate an early conclusion to the matter,” it added.
According to a local senior consultant of Genneva Gold who requested anonymity, the question now is “where did the money go? Bank Negara said Genneva owes 4,000kg to 8,000 clients’ delivery of gold they had paid for.
“That would mean the company should have 4,000,000 x RM166.3 based on today’s wholesale price which amounts to more than six billion ringgit but since the clients have to pay 20 to 25 per cent more through Genneva that would mean the company should have at least RM7 billion in cash or gold bars (some renewed their contracts by returning the gold to get a new batch),” he explained.
He stressed that the focus of the investigation was on the 126kg of gold seized and the more than RM90million frozen.
“But why is there no word on the money and gold the company should have in its possession? Are the investigators contented to deal with the seized gold and frozen bank account?” he asked.
When posed a question, BNM shot back in an email saying that it would only be able to entertain queries within five working days.
Meanwhile, a local investor revealed that she had been harassed by a series of short messaging system (SMS) and phone calls from someone who represented TGG Malaysia which has a link to international Hallmark Gold.
“There is something fishy going on because our information and particulars are supposed to be confidential with Genevva but now it seems that our particulars and information have been leaked out,” she complained.
In Sibu a businessman does not believe that Genneva Malaysia Sdn Bhd is making losses as alleged by Bank Negara.
Wanting to be identified only as Ling, he said the statement by the central bank that the company suffered considerable losses and had liabilities exceeding 10 times its assets was not true.
“I do not believe that this is true, I believe that the company is making a profit, and I suspect there is a political influence behind this,” he pointed out.
According to him, former prime minister Tun Dr Mahathir Mohammad had also expressed his grievances and views on Genneva.
Ling said he received a phone call a month ago asking him to stay calm over the issue because a company would take over Genneva and a meeting with clients and consultants would be held in Kuching this month to discuss the matter.
“However, I have yet to be informed of the date of the meeting,” he said.
He also said many consultants and clients of the company were not satisfied with Bank Negara.
- The Borneo Post
http://www.theborneopost.com/2012/12/05/genneva-to-update-investors-report/#ixzz2E8uTQyIp
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