Update on Status of Investigation on Genneva Malaysia Sdn BhdRef No : 12/12/01 03 Dec 2012 Embargo : For immediate release
Following recent raids on several companies suspected of operating illegal investment schemes using gold, the enforcement agencies would like to provide the following update, specifically pertaining to investigations into Genneva Malaysia Sdn Bhd.
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% to 25% higher than the market price, paying returns of about 2% to 3% 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.
Seized documentation has revealed that more than 8,000 customers of the company who have paid for gold have yet to receive their gold amounting to more than 4,000 kilograms. In addition, the records also 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.
The various enforcement agencies have received numerous appeals from affected parties in respect of Genneva Malaysia Sdn Bhd, for the release of monies frozen (RM99.8 million) and gold seized (126 kilogram) secured as evidence1 of suspected offences. Such monies and gold are required for the investigations and will only be dealt with at the direction of the courts. Members of the public are advised to refer to Bank Negara Malaysia’s website for further information. 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.
Joint statement by:
Bank Negara Malaysia
The Royal Malaysian Police
Ministry of Domestic Trade, Cooperative and Consumerism
Companies Commission of Malaysia
1 The earlier figures released of gold seized (142.7 kilogram) and monies frozen in bank accounts and cash (amounting to RM101.92 million) refer to all four companies suspected of conducting illegal investment schemes using gold, including Genneva Malaysia Sdn Bhd.
© Bank Negara Malaysia, 2012. All rights reserved.