Category Archives: Bank Negara Malaysia

Genneva ‘Axed’ Chairman Wanted by BNM

BNM BH 21102013Source: Berita Harian, Page 31, 21 October 2013

KUDOS BNM! There is JUSTICE after all.
Finally BNM is going after the REAL CULPRIT who started it all.

Greedy Genneva ex-chairman Ahmad Khairuddin bin Ilias was turned down when he wanted more money from management. It was a personal vendetta, “all or nothing”, took his revenge with his cahoots by going to the authorities such as JAKIM, PPIM and BNM claiming that Genneva was not Syariah-compliant.

Go down memory lane, revisit photo album A Conspiracy? Whodunnit?

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Press Statement by Genneva Customers Sabah

Date:              12th March, 2013
Time:              1:00pm
Venue:           Sabah Golf & Country Club, Kota Kinabalu, Sabah.

1.0       INTRODUCTION

GENNEVA Malaysia Sdn Bhd was raided by Bank Negara Malaysia on 1st October, 2012 for suspicious of operating illegal investment schemes using gold. Genneva Malaysia is an innovative gold trading company in Malaysia.

GENNEVA Malaysia had attracted about 6,000 consultants with near to 60,000 customers transforming 300,000 lives for this 1,000,000 welfare of Malays, Chinese, Indian and others with an estimated total sales turnover revenue of RM3 billion as reported by the newspaper. Total numbers of customers in Sabah is expected to be around 1,000 from all walks of life.

In the last five months, the customers of GENNEVA Malaysia have send many petitions to our current and former Prime Minister of Malaysia, Governor of Bank Negara Malaysia, Minister of Home Affairs and various political parties and politicians to seek assistant to appeal to Bank Negara Malaysia to expedite the investigation of GENNEVA Malaysia.

We, the affected customers in Sabah want to believe in the Central Bank of Malaysia claim to protect and stand by the people but we simply don’t see that is happening here after 5 months where there is no update given to the Rakyat on the outcome of the investigation.

2.0       OBJECTIVES OF TODAY’S EVENT

The objective of today’s event is to request Bank Negara Malaysia to give us, the customers an answer as to the outcome of their investigation without unnecessary and further delay so that we can take the necessary action to recover our losses.

3.0       WHY CUSTOMERS CHOOSE TO BE IN FAVOUR OF GENNEVA MALAYSIA?

We as the Customers of GENNEVA Malaysia basically choose to buy gold from GENNEVA Malaysia to hedge against inflation.

  1. We choose Genneva Malaysia because we witness their credibility and transparency in their operation.
  2. They create not only favorable income for many a family but they provided employment for the jobless, for semi-retirees, for single parents etc
  3. They help to put many families home with food on their table, support high cost of medical bills, support our old aged parent and sick love ones, support our children educations, pay loans and channel part of our income to charity centers etc.

4.0       WHY NO FAULT OF GENNEVA MALAYSIA AND SUPPORTERS

Our confidence was enhanced as we understand that the Central Bank was holding talks, a consultation dialogues with Genneva Malaysia. This was on-going for the last 8 months before the raid with the noble intention to help and guide Genneva Malaysia to ensure they are compliance to all legality of their operations in order to protect Genneva Malaysia and their supporters.

The dialogue and consultations were as follow:

  1. Genneva Malaysia has been in consultation with their Syariah Committee. All necessary Sale and Purchase contracts or documents between Genneva Malaysia and customers are to be vetted by the Syariah committee and to be carried out by Genneva Malaysia (Note: Syariah Committee members required to obtain prior written approval from Central Bank.)
  2. On Feb 12, 2012 Central Bank’s director of legal department informed the company that after having audited Genneva Malaysia, they came to a conclusion that there was no issue in Genneva Malaysia business model.
  3. On Feb 27, 2012 Genneva Malaysia advertised in all major newspapers as directed by Central Bank, a condition for Genneva Malaysia to resume business.
  4. Key Notes of the advertisement “No buy back guarantee, Not an investment company, Only a Gold trader.”
  5. 8 months ago before the raid, in order to protect their consultants and customers from the grey areas of law, Genneva Malaysia took the liberty to write to the Prime Minister Dato’ Najib Tun Abdul Razak urging for regulation of gold business as the gold business is currently not regulated.
    Upon receipt of the letter, the Prime Minister directed Central bank and the Finance Ministry to set up a task force to study the regulation of gold business in the country.

5.0      DIGNITARIES GRACING GENNEVA MALAYSIA’S FUNCTIONS

On top of it, we were impressed with dignitaries gracing Genneva Malaysia’s functions as below:

  1. On 15 Dec, 2010 Genneva Malaysia Syariah Compliance was launched by our former Prime Minister Tun Dr Mahathir Bin Mohamad,.
  2. On 3 Feb, 2012 representative of Deputy of Finance Minister officiated the opening of new office of Genneva Malaysia Sdn Bhd.
  3. On 20 March, 2012 our first lady, Datuk Paduka Seri Rosmah Mansor  graciously attended our consultants appreciation night as Guest of Honor of GENNEVA Malaysia.
  4. On 14 Sept, 2012 Genneva Malaysia welcome the new Chairperson Princess Tengku Dato Muhaini.

Judging from the above, the controversial raid has probably sent a mix messages to the people for their real reason behind it.

From the on-going dialogue and consultation between Central Bank and Genneva Malaysia to a sudden shift to raiding was a shocking blow which not only threatening and robbing many livelihoods but inflicting emotional and personal grief as well as the trust of the people;

It was heart breaking for Genneva Malaysia and supporters who had put all their faith and trust with Central Bank who were enjoying an on-going dialogue and consultation with them for the last eight months before the raid.

Many people cannot help wondering if the action they had taken could be triggered by many jealousy and hatred from rivals whom they need to please instead of directing them to face their own challenges to improve their platform to encourage financial freedom without forcing people back to out-of-favor streams that create more and more debt slaves.

6.0       ADDRESSING MISCONSTRUED ISSUES

Genneva Malaysia does not offer an investment plan.

  1. Genneva Malaysia is just a gold trading i.e. buying and selling of physical gold (not paper).
  2. All receivables above $10,000 from buyers are through the banks.
  3. Should the Central Bank channel their resources to help company like Genneva Malaysia who are willing to take a step further to assist in the task force on regulations of gold?
  4. Genneva Malaysia have made several requests to the Prime Minister and relevant authorities to regulate gold trading business.
  5. If there are any suspicion on money laundering, the banks are responsible to vet through customers details and any suspicious of incoming customers funds.
  6. Genneva Malaysia does not give out interest but discretionary Hibah (gift) – base on syariah principles.
  7. SUSTAINABILITY – Genneva Malaysia is not a financial institution or get-rich-schemes. We do not know if there is a law or stature in Malaysia that can be charged if sustainability is in questions. Otherwise, many trading companies would have to be raided.
  8. How Genneva Malaysia make money? We are very sure that is their business secret which no businessman would divulge. But there is one important secret we know is their century of experiences in combination of their ages.
  9. Genneva Malaysia has always met their obligations and commitments to their consultants and customers.
  10. 10. Bail out – Gold trading is not under the purview of Central Bank, the latter is not obligated to exercise bail out.

7.0       WIN-WIN SOLUTION

We the customers of GENNEVA Malaysia would like to  seek the urgency for a Win-Win Solution between the Central Bank and Genneva Malaysia with their customers and consultants for the sake of over 300,000 livelihoods involving more than a 1,000,000 of Malays, Chinese, Indian and others welfare.

APPENDIXES
kastam to gold beam

MOF to Gennevagenneva to pmPM to BNMAppendix-Photos
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Over 200 anxious Genneva investors want answers fast

0130308 Borneo PostKUCHING: More than 200 anxious Genneva Malaysia Sdn Bhd investors gathered outside the compound of Bank Negara Malaysia (BMN) here yesterday morning, calling for the government’s rapid response to resolve the matter.

The investors are not happy because the authorities concerned have taken too long to conduct investigations into the legality of Genneva Malaysia Sdn Bhd’s operations.

The company’s bank accounts and other assets have been frozen by BNM since Oct 1 last year, following suspicion that the company allegedly breached several banking and financial laws such as illegal deposit-taking, money laundering and tax evasion and appointing agents without licence, after several people lodged complaints with the police.

According to a spokesperson of the company’s customers in Sarawak, who did not want to be named, he said five months had passed since Genneva was raided but still there were no updates on the matter.

“We want Bank Negara to complete the investigation soonest possible for we don’t want to be kept in the dark. We are extremely worried,” he said at the gathering to hand over a memorandum to the governor of Bank Negara Malaysia.

“We hope the outcome of their investigation could be released without unnecessary delay so that we can take the necessary action to recover our losses,” he said.

“We are calling for intensified and swift efforts in resolving this matter considering the (huge) number of people affected.

“Many of us depended very much on this investment to supplement our income as well as to sustain the family and cover expenses including medical bills, loans and tuition fees of our children’s higher education,” he said.

Sarawak DAP secretary Chong Chieng Jen was present to lead the group in handing over the memorandum to an official of the bank.

Chong, who is also Bandar Kuching MP and Kota Sentosa assemblyman, said that investigations on this matter could be done fast by just going through the transaction records of Genneva’s account.

“The investors want to know whether there are contraventions with the law or otherwise. If there is none, then their accounts should not be frozen.

“Now their money is locked out and they don’t know what will happen to it and what to do next,” he said.

If investigation proved that the operation of Genneva was illegal, Chong said the authority should proceed to take action against those who have committed the crime.

Chong also highlighted the fact that the product, which was advertised as syariah-complaint gold, was launched in Dec 2010 by former prime minister Tun Dr Mahathir Mohamad.

The spokesperson also said that there were about 10,000 people statewide affected by the freeze.

The latest update on the matter was three months ago, according to the spokesperson, where Genneva Gold said they would issue a letter to update them on the latest development.

In a statement published by BNM in early December, it said that initial forensic accounting had uncovered considerable losses experienced by the company last year. The company had liabilities exceeding 10 times its assets.

The statement also said that the sale of gold at 20 per cent to 25 per cent higher than the market price, paying returns of 2 per cent to 3 per cent per month to customers and buying back the gold from customers at the initial purchase price was not a sustainable venture.

It also noted that cash flow for the company to sustain its operations had relied heavily on the amount collected from new customers.

Bank Negara governor Tan Sri Zeti Akhtar Aziz has also in December last year assured that the central bank was fast-tracking investigations into the controversial gold trading company so that its customers would not be kept waiting for too long.

Genneva, Pageantry Gold Bhd, Caesar Gold Sdn Bhd, Worldwide Far East Bhd and Bestino Group Bhd were among 25 individuals and companies offering unlicensed activities that were placed on an investor alert list by the central bank in 2011, double the number from 2010 and the highest record since 2003.

SOURCE: Borneo Post

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Genneva Malaysia Customers demo at BNM Kuching Office

130307 GMS-Kch-1

7 March 2013: Genneva Malaysia Customers gathered in front of Bank Negara Malaysia building in Kuching Sarawak demanding for their gold and GMSB to be released. They also handed a letter to BNM Governor Tan Sri Zeti Akhtar Aziz through BNM Kuching office.

Letter to TS Zeti 1Letter to TS Zeti 2Letter to TS Zeti 3

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Little Napoleons the Big Shots

BNM-BN-PeoplePROVEN! Believe it or not, the little napoleons in BNM are really bigger shots and have got more power than the PM cum Minister of Finance himself. Next time when PM Najib Razak says “Don’t Worry” best take it with a BIG pinch of salt.

FMT : ‘Bank Negara ignoring PM’s directive’
Businessman involved in land dispute with a local bank claims Bank Negara has yet to initiate any action despite instructions from Najib Tun Razak to do so.

The Little Napolean in GMSB’s Case

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Responding to Duck Tales

DuckTales-logoLike any mischievous creature, DONALD DUCK is no exception. Yesterday he made another appearance and we knew then that he was very selective to whom he speaks to. For some reason he chooses to be in the Chinese medium, so this time he preferred to bask in the comfort zone offered by the Oriental Daily News.

As in the previous occasion, the MCA owned news agency, The Star, had ignored in picking up his story. Strange though because The Star used to be very eager to report anything about Genneva Malaysia and the newspaper won’t miss any chance to run it to the ground.

Whether significant or not, let’s see what the duck had to say. For people who can’t read Chinese, this article breaks down his quotes which are then translated into English. Note that translation is not 100% but close enough to be understood.

1.   The Duck says:- “Gold is still one of the most reliable investment portfolios to have and for this he attributed to a host of reasons including the instability of major currencies including the US Dollar, the unresolved international debts, the Chinese RMB, etc. He quoted the world gold stocked up 170,000 tons worth about $500 billion with China and India being the major gold consumer. He said the Ministry of Finance had begun preparations last year for the establishment of a gold trading platform and for this a Mercantile Exchange shall be set up that is going to follow similar blueprint as the Hong Kong Gold Exchange. He says if all goes well, this plan is expected to be finalized by September 2013. The Mercantile Exchange will be place under the Malaysian Securities Commission who will then supervise the sale and purchase of gold. It will provide a secure investment platform for investors and he believes it can attract Southeast Asian investors”.

Comment: Duck’s message is plain and simple, gold is the way to go and his government is aware of this. By his very own words, the duck has spilled the beans. His government has big plans and ambition for the gold trading industry, enough so to set up a Mercantile Exchange. Only problem facing them is Genneva Malaysia Sdn Bhd (GMSB) because unlike any other seen before, GMSB has a solid footing in this industry with at least 5 to 6 years ahead in lead time. It is truly a market leader in this field and as such GMSB is standing in the way of the government’s ambition.

Once the Mercantile Exchange is formed, the government through the Malaysian Securities Commission is able to play the game in any which way they want and of course licenses would only go to crony controlled parties.

But it is not easy for any newcomer to penetrate such market if GMSB has already cornered a sizeable market share in virtually the whole of Malaysia including the eastern states of Sabah and Sarawak. So it is not stretching one’s imagination to say that the government requires (or perhaps even ordered) its watchdog, BNM, to clean up the industry as it is still unregulated up to the present day. As he said, the only way is to ban them literally. For achieving this they will not hesitate to use any tool available in any which way they can.

We all know of course that they are only good at sticking to the usual tried and tested way, i.e. to drum up some charges under the AMLATFA or BAFIA and see whether any sticks. It is the same way as how they wanted to stick sodomy charges up somebody’s ass one too many times. Sadly for them there is a saying that if you cried wolf too many times, your credibility goes rolling downhill, all the way.

Interestingly though the government has opened itself to conflict of interest. It has stripped its intention bare for all to see and if so any judge in a judicial review would have no trouble whatsoever spotting the naked allegations against GMSB a mile away. Of course to concerned Gennevarians that prospect is still a small cause to celebrate.

Donald LimOn the same note, there is wind circulating around that the duck has taken flight overseas to sniff out big gold players with the objective of laying the foundation for them to set up shop domestically. Click to view Photo 1 and Photo 2.

If that has any element of truth in it, then it is not wrong to say that such a policy is contradictory of PM Najib’s objective of nurturing home grown entrepreneurs to lead the way in contributing to the domestic GDP.  Remember PM Najib’s eight strategic reform initiatives that he said Malaysia would be focused on? In case the duck does not remember, they are:

  • Re-energising the private sector to lead growth;
  • Developing a quality workforce and reducing dependency on foreign labour;
  • Creating a competitive domestic economy;
  • Strengthening the public sector;
  • Putting in place transparent and market-friendly affirmative action;
  • Building knowledge based infrastructure;
  • Enhancing the sources of growth; and
  • Ensuring sustainability of growth.

To cut off domestic players such as Genneva Malaysia and to make way for foreign ones so that the government may glorify itself by claiming success in “attracting Southeast Asian investors” into the country under a Mercantile Exchange platform seems not only foolish but anti-patriotic too as it undermines home grown entrepreneurship at the expense of political expediency.

2.   The Duck says: BNM has appointed two audit companies, KPMG (KPMG) and Pricewaterhouse Coopers (PwCooper) to assess and audit GMSB’s assets and liabilities.

Comment: A lot of people would agree that this story is stretching one’s imagination too far. Logic begs the question as to the need to appoint the world’s two major audit houses to do the same job. If what he says has any truth in it, is this going to be a case where too many cooks spoil the broth?

Or is BNM not going to be bothered whether the end result is broth or soup because either way, they have orders to wipe out GMSB as per reason given in (1) above?

3.   The Duck says: According to the preliminary report from BNM, GMSB loss RM757 million in 2011, and that loss further increased to RM1.6 billion in September 2012. At the same time, GMSB has liabilities of RM14billion, but only has RM111.3 million assets.  He says the report also points out that relative to GMSB’s cash and gold reserves, the possibility is very low that GMSB can meet its obligation to pay back its customers’ cash and gold.

Comment: The duck is still continuing to spin the same old story, with the exception that he spiced up the liability from RM10 billion to now RM14 billion. A little bird told me that in 2011 GMSB not only didn’t make any losses but paid quite some hefty income tax to Inland Revenue. With Judicial Review in place, we will be able to find out just how much tax GMSB paid in 2011, won’t we? I believe once we exposed a single lie, all other lies will naturally be purged too.

4.   The Duck says: If BNM had not immediately interfered, GMSB gold investment plan in 2012 may lead to more victims where it is estimated that the number involved may reach 14 million people; and the amount of investment with the trend as calculated has a total investment of more than 30 billion ringgit.

Comment: What duck says is purely conjecture and hypothesis. In fact his statement is rather contradictory and flimsy. Let’s examine what he said. On the one hand, he said in paragraph (3) above that GMSB made severe losses in 2011 (RM757 million) and even greater losses in 2012 (RM1.6 billion). But on the other hand, he said had BNM not stopped GMSB on 1st October 2012, the company would have got 14 million more victims who would have poured in a total investment of more than RM30 billion.

These allegations simply do not add up and anyone could see through that. If it is true the company had already gone broke in 2011, how did it manage to grow exponentially in 2012 to reach a total customer base of about 60,000 people? Wouldn’t it be the reverse case if I say that the company being bogged down by a hefty loss of RM757 million in 2011 could not have possibly survived year 2012 let alone being able to scam another 14 million victims if not for BNM’s intervention? Is his story convincing to you? If not then I’d say let the court be the judge of that.

5.   The Duck says: The report also found that some people involved in money laundering activities through such investments.

Comment: There is nothing very much GMSB can do about it because every purchaser who comes along literally pays cash to buy the gold from the company. Is it practical for BNM to place the onus on GMSB to verify the source of money pertaining to each of its customers?

Bringing comparison of this issue with the instance where some people buying stocks or shares from KLSE (or Bursa Saham), is it fair to impose the burden on Bursa Saham to check and verify that each client who buys equity from the market is not involved in money laundering activities and does not bring in dirty money into the system?

Is there any system that can be put in place with such efficiency in the first place? Is BNM prepared to raid Bursa Saham, cease its operations for months and find out through a lengthy audit how many people are involved in money laundering activities? Would you not expect Bursa Saham to be pleading the same mercy as what GMSB is doing now?

So why do we see BNM practicing double standards then?

By Dee Casey, Genneva Malaysia Supporters

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Genneva Consultant Needs Help

DAVID GAN, 49, with stage 5 renal failure was recently discharged from hospital in Melaka after spending 17 days there. He will have to continue with clinic dialysis stuck to a machine for five hours, three times a week.

David is a Genneva customer and subsequently joined as a consultant at Genneva Malaysia Sdn Bhd for the past three years.

Since GMSB was unjustly raided by Bank Negara Malaysia on 1 October 2012, he has had no income for five months. His gold is also stuck with Bank Negara.

Being the sole bread winner of his family with wife and three children ages 8, 13 and 17; David has ran out of savings to support his family with no source of income and accumulating bills and loans to pay.

Financially drained and coupled with the compulsory dialysis three times a week amounting to RM800 a week (RM3,200 a month) the entire family is in dire straits.

Gennevarians or anyone who can lend a hand to save David’s life and help his family make ends meet till David can get back on his feet, please make your contribution directly into David’s joint account with his wife:

Anne Loke/Gan Hin Soon (David)
Maybank A/C: 504115050804

If you require more details, call or text Anne Loke at (014) 232 2255.

Thanking you in advance,
Admin, GMS FB

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