BNM, agencies still probing Genneva gold fiasco

In a joint statement today, BNM, Royal Malaysin Police, Ministry of Domestic Trade, Cooperative and Consumerism and Companies Commision of Malaysia, said they had received numerous appeals from affected parties in respect of Genneva Malaysia for the release of monies frozen (RM99.8 million) and gold seized (126 kg) secured as evidence of suspected offences.

"Such monies and gold are required for the investigations and will only be dealt with at the direction of the courts," the statement said.

It said the initial forensic accounting has uncovered considerable losses being experienced by the company in 2012 and the company has liabilities exceeding 10 times its assets.

"The actual operations of the company by selling gold at about 20 per cent 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 has not been a sustainable venture.

"In this regard, the cash flow for the company to sustain its operations has relied heavily on the monies collected from new customers," it said.

The statement said seized documentation has revealed that over 8,000 customers of the company who had paid for gold had yet to receive their gold amounting to over 4,000 kg.

"In addition, the records show that there are customers who have surrendered their gold to the company but have yet to receive their cash reimbursement that amount to more than RM80 million," it said.