Gold traders file RM146 million suit against Genneva Malaysia Sdn Bhd

A total of 1,065 gold traders are suing a gold investment company, Genneva Malaysia Sdn Bhd (Genneva), for breach of contract involving RM146 million in sales and purchase of gold.

They also named Bank Negara as the co-defendant in the civil suit for ancillary orders to release the gold and monies which were now held as property on trust by the central bank following a raid and seizure at the company in 2012.

The plaintiffs, headed by Murshid Meam Ghouse, filed the suit through the legal firm of Raj, Ong & Yudistra at the High Court Registrar office last Monday. Copies of the statement of claim were made available to the media today.

In the statement of claims, the plaintiffs claimed they had entered into three types of agreements with Genneva for gold trading.

The plaintiffs claimed Genneva did not provide the gold products they bought, causing them to suffer losses in the form of cash amounting to RM48,816,915.

The plaintiffs also claimed they did not receive the gold or the value of the gold they bought, which amounted to RM81,952,471, nor did the gold trading company paid them the sale price for the gold, amounting to RM15,255,953.

As such, they said, Genneva had defaulted in honouring the contracts with them, involving total losses of RM146,025,339.

They also claimed that Bank Negara owed them a common law duty to return to them the properties which it had seized during a raid on Genneva.

The plaintiffs are claiming, among others, special damages of RM146,025,339, from Genneva and an order for Bank Negara to return the gold and money to them, as well as interest, cost and other relief deemed fit by the court.

Counsel Yudistra Darma Dorai, representing the plaintiffs, said the writ of summons had been served on both defendants yesterday.