Dear YAB PM,
Please be fair to Genneva’s customers. Bank Negara’s raid against Genneva and other gold companies’ is not seen as a fair and justified move as it hurts about two million people’s life time savings.
The affected rakyat may be the frustrated force that may even break the camel’s back for the Barisan Government in coming 13th General Elections. While the customers appreciate Bank Negara’s intervention in curbing malpractices such as money laundering, misrepresentation and failure to submit documents, the central bank has failed in safeguarding and protecting the buyers’ lifelong savings.
As an urgent measure, the central bank has not even considered settling with the customers millions of Ringgit stuck with Genneva. The best move will be to allow the current management to go ahead and allow it to run its day to day operations to pacify the buyers who are also voters. A grace period should be given warning Genneva of its shortcomings so that it can correct its wrongful actions, if any.
Bank Negara can allow the company to continue its operations attending to buyers’ problems and issues as their money is stuck in the treasury of Genneva. Worse still, customers were told that Bank Negara had carted away about 200 kilograms of gold and cheques which were due to be given to them.
If the Government does not allow the cheques to be disbursed then the expansion of the economy will be curtailed. Crying foul, customers have cried out in The Star: “Please do not take away our money and gold.” It will even allow for rumours to spread like wildfire.
Now, the ignorant few customers are conversing that the Government is desperate and has no money so they have taken the gold to print more money. These are some of the desperate comments being circulated about Bank Negara’s action. And, honestly when I heard it I had a good laugh. An editor noted in a column it is a situation that requires patience and calm on the part of the customers.
Agreed, but what do you say when some of them solely dependent on the hibab (gift) to finance children’s further education, dialysis for members, medical care, operations and feed the family.
In any crisis, communication it is of vital importance in keeping the public satisfied and contented. Communication is the hallmark of any crisis communication exercise.
Bank Negara is only releasing statements on their successful raids but failing to give any assurance to the two million odd investors that their money is safe. Currently, more than 200,000 investors are affected, with a multiplier effect of 10 dependants to each investor; the total will snowball to about 2 million.
GENNEVA OFFICIAL COMPLAINED
Almost all the 80,000 Genneva customers are aware of how and why Bank Negara raided Genneva. Money being the root of all evils, it all started when a top ranking Bumiputra in Genneva, early this year demanded more in allowances and salary and it was not approved.
According to reliable sources, frustrated, he resigned and got Islamic NGOs and the Fatwa Council to campaign against Genneva and lodge complaints with Bank Negara.
The complainant also attempted to file a caveat on Genneva and it was struck out by the High Court.
Following his and other complaints, central bank officials started investigations, interviewed Genneva officials and officials of other gold companies. Bank Negara made a major announcement of 77 gold related companies were on its alert list. Then on October 1st raided Genneva and followed up with raids of other companies.
Some of Genneva’s gold customers have been buying gold from company since it opened for business at the end of 2010. The question raised by customers is why didn’t Bank Negara move in earlier?
Genneva’s Syariah compliant gold was officially launched by former Prime Minister Tun Dr Mahathir Mohamad, on Dec 15, 2010. See YouTube: http://bit.ly/RXQcCZ
The former King, Datin Seri Rosmah, royalties and other prominent personalities have graced Genneva’s dinners and official events. It is ironic that the authorities had raided an organisation out of the 77 on the Bank Negara red alert list, when it was Genneva which had written to Prime Minister Datuk Seri Najib Tun Razak about three months ago to regulate the gold business, as the gold business is not regulated currently.
On receipt of Genneva’s letter urging to regulate the gold business, Najib acted immediately and directed Bank Negara and Finance Ministry to set up a task force to study the regulation of the gold business in the country. Gold trading is permissible and there is no restriction on it, as confirmed by a letter written to Genneva by the Finance Ministry.
REVOLUTIONARY BUSINESS MODEL
Genneva’s business model is truly revolutionary, innovative and true to its spirit – a blue-ocean business strategy. It is for this reason; Prime Minister has called on entrepreneurs to introduce innovative products for the expansion of the Gross Domestic Product (GDP).
The 24% to 36% return per year that Genneva Malaysia offers is achievable because its underlying asset is physical gold bullion, plus Genneva Malaysia has an innovative system to generate even greater returns as a company.
Getting a return of +25% per annum with an upside of around +40% is possible with several trading and hedging systems. It profits from every gram of gold they sell to clients at retail prices. Combined with the increasing price of gold plus with the hedging systems it is able to give 24% to 36% every year.
Genneva Malaysia’s business model is not a ponzi scheme and it’s definitely not a get-rich-quick scheme. Its business model is called a Wealth Sharing Platform, because that is what Genneva truly does. It shares its profit (and wealth) with its clients. Genneva Malaysia’s business model is the new age biz model.
And what started as a Buatan Malaysia, five years ago, has since grown into one of the leading gold bullion traders across Asia with businesses in Singapore, the Philippines, Hong Kong and China (where Genneva has a 30-year operating license in Beijing).
As Malaysia moves to attract foreign capital and be a financial hub, Bank Negara and the Association of Banks Malaysia should study the biz model and implement it to make it legal to benefit Malaysians. Innovation, like Prime Minister says will drive success and prosperity for the nation.
Gold is universally accepted, and some countries have used it as a currency or to support its currency. Like other goldsmith shops, Genneva is also selling gold but on a different platform in a scheduled and regulated manner.
Some of Genneva’s consultants and investors have complained in the media that they have been having sleepless nights because they do not know how to earn money to fund children’s education and feed the family.
On behalf of the other investors, I pray Mr Prime Minister Sir, will lift the suspension immediately. Bank Negara should expedite their probe into Genneva so it could resume operation soon.
It is only fair to allow Genneva to operate while investigations are in progress. I earnestly hope, not only for my sake but for the benefit of 80,000 investors, wisdom will prevail on the part of the authorities.
Only sanity and good decision making on the part of the Government will allow Genneva to continue its business so that its customers can breathe, eat and support their dependants to continue living in this great land, Malaysia.
M.Krishnamoorthy, International journalist and Genneva Malaysia Supporters