Do you still think that you can get back your money????
Authorities find losses in Genneva
Business & Markets 2012
Written by Nadia S Hassan of theedgemalaysia.com
Monday, 03 December 2012 17:50
KUALA LUMPUR (Dec 3): The authorities have found considerable losses in Genneva Malaysia Sdn Bhd, which is at the heart of a recent raid conducted by the authorities on several companies suspected of operating illegal investment schemes using gold.
According to a joint statement on Monday by Bank Negara Malaysia, The Royal Malaysian Police, the Ministry of Domestic Trade, Cooperative and Consumerism, and the Companies Commission of Malaysia, initial forensic accounting had uncovered considerable losses being experienced by the company in 2012.
“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,” says Bank Negara in the statement.
The statement added that the cash flow for the company to sustain its operations has relied heavily on monies collected from new customers. According to seized documentation, more than 8,000 customers of Genneva who have paid for their gold amounting to more than 4,000kg have yet to receive it. Records also showed a number of customers who have surrendered their gold to the company, but yet to receive their cash reimbursement to the tune of RM80 million.
The authorities had originally raided Genneva back in October.