Probe reveals returns promised are not from gold trading

KUALA LUMPUR: Investigations into the accounts of the recently-raided gold trading firms revealed that the amount of assets and monies held by these companies do not match the amount collected from their investors.

The schemes offered by the firms were, therefore, unsustainable.

A joint press statement issued by Bank Negara Malaysia, the Attorney-General’s Chambers and the police, said it was discovered that these companies are operating schemes that are believed to be not sustainable to provide the promised high monthly returns, nor would they be able to provide the buy back guarantee of gold.

“The returns promised are not funded through gold trading, but from the monies invested into such schemes,” it said.

It added that these companies were found to have delayed returning gold or money to the investors within the promised stipulated time.

“Such signs are early warning indications prior to the collapse of such schemes that would result in significant losses to investors.

“These raids were conducted in the interest of protecting the investors as well as the public at large from falling victim to illegal schemes,” the statement said

On Oct 1, the police, Bank Negara, Companies Commission of Malaysia and Domestic Trade, Cooperatives and Consumerism Ministry jointly raided Genneva Malaysia Sdn Bhd and its affiliates in the country over suspected offences.

Days later, three other companies, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd, were also raided.

Meanwhile, consultants and clients of Genneva Malaysia have sought Umno Youth’s help.

The wing’s public complaints bureau chairman Datuk Khairun Aseh said they would send a letter to Bank Negara to urge it to lift the freeze on the gold trading firm’s accounts.

“We want them to give a clear timeline on when they can return the assets to the respective owners,” he said yesterday.

Khairun added that they would also propose that payment for this month proceed as usual.

“We have received complaints of parents having to ask their children to return from abroad because they cannot afford to pay for their expenses,” he said.

Khairun also called on Bank Negara to come up with proper regulations with regard to gold trading to prevent a repeat of such incidents.

Leave a Reply