Date: 12th March, 2013
Venue: Sabah Golf & Country Club, Kota Kinabalu, Sabah.
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.
- We choose Genneva Malaysia because we witness their credibility and transparency in their operation.
- They create not only favorable income for many a family but they provided employment for the jobless, for semi-retirees, for single parents etc
- 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:
- 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.)
- 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.
- On Feb 27, 2012 Genneva Malaysia advertised in all major newspapers as directed by Central Bank, a condition for Genneva Malaysia to resume business.
- Key Notes of the advertisement “No buy back guarantee, Not an investment company, Only a Gold trader.”
- 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:
- On 15 Dec, 2010 Genneva Malaysia Syariah Compliance was launched by our former Prime Minister Tun Dr Mahathir Bin Mohamad,.
- On 3 Feb, 2012 representative of Deputy of Finance Minister officiated the opening of new office of Genneva Malaysia Sdn Bhd.
- 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.
- 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.
- Genneva Malaysia is just a gold trading i.e. buying and selling of physical gold (not paper).
- All receivables above $10,000 from buyers are through the banks.
- 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?
- Genneva Malaysia have made several requests to the Prime Minister and relevant authorities to regulate gold trading business.
- If there are any suspicion on money laundering, the banks are responsible to vet through customers details and any suspicious of incoming customers funds.
- Genneva Malaysia does not give out interest but discretionary Hibah (gift) – base on syariah principles.
- 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.
- 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.
- Genneva Malaysia has always met their obligations and commitments to their consultants and customers.
- 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.
Dear Prime Minister
99.9% OF GENNEVARIANS DON’T BITE THE HAND THAT FEEDS YOU
1. What does the above tells you Mr Prime Minister?
a. It says that 99.9% of Gennevarians are in favor of Genneva M’sia to be re-opened.
b. It says that 99.9% of Gennevarians strongly felt that the raid was done in bad faith.
c. It says that 99.9% felt that we were a lot happier without authorities’ interference.
d. It says that 99.9% of Gennevarians don’t bite the hand that feeds you.
2. This is especially written to make peace with your good self and the authorities, urging you to help the 66,000 consultants/customers involving over 300,000 livelihoods consisting of Malaysians from all communities be they Chinese, Indian, Malay and others in Genneva Family to achieve a Win-Win situation.
3. In light of the BNM raid of the company, it is very important for you to know that 99.9% of the consultants/customers are still faithfully supporting Genneva Malaysia Sdn Bhd.
4. FOR YOUR KIND AWARENESS, currently, thousands of Gennevarians have already made police reports throughout Malaysia and soon to take a step further to file for Judicial Review over the displeasure of the raid by BNM.
5. There were countless immoral tactics and attempts by irresponsible quarters to instigate Gennevarians to turn against the company but they had failed badly.
6. Gold is good for hedging inflation with higher yield. Genneva Malaysia provides a safe-haven platform as when we buy the gold, we are given physical gold 999.9 grade. We are the owner of this physical gold and we simply do not trust paper gold.
7. In this very challenging time in this world crisis and inflation that badly affected many families, Genneva Malaysia has not only save my family but many others.
8. Since the merciless raid on 1 October 2012, it has put so many families in misery and horrific pain and suffering;
a. Many families not being able to put food on the table now,
b. There were deaths in a few families,
c. The sick now cannot afford to seek medical treatment,
d. Parents cannot afford and painfully watch their children in limbo especially those in the midst of studying in higher learning local and overseas institutions,
e. More than 10,000 of us are jobless now.
9. Please do not wrong the Genneva Malaysia who has over the years provided sustenance and hope to many families through their innovative gold trading platform. BUT LET YOUR HEART GO OUT TO US, ONE GENNEVA FAMILY!
10. Genneva Malaysia was once the DARLING of top dignitaries and our events were graced by our first lady Prime Minister’s wife Rosmah Mansor, representative of Deputy of Finance Minister, our new Chairperson Princess Tengku Dato’ Muhaini and our former Prime Minister Tun Dr Mahathir.
11. On top of that, BNM had dialogues and consultations with Genneva M’sia for eight months.
BNM proudly announced to our directors on 12TH Feb 2012 that BNM’s director of legal department after audited the company came to a conclusion that there was no issue with the company. We were further advised by BNM that they were more than happy to constantly support, help, serve and guide the company to follow proper guidelines.
12. However, the brutal raid on 1st Oct 2012 showed the relevant authority/authorities was not transparent and played out the company with false sincerity to help.
May God’s Grace always be with you and your family.
Shereen Lim, Genneva Malaysia Supporters
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KUCHING: 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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People, write to PM TODAY, 8 MARCH, at firstname.lastname@example.org – Ask PM (as Finance Minister too), when is he going release Genneva Malaysia Sdn Bhd, raided unjustly by Bank Negara Malaysia on 1 October 2012?
Five months and 8 days have gone by, how long more does BNM need to finish investigation?
Is it fair for BNM to retain Genneva customers’ gold and continue to freeze GMSB’s bank account without evidence of any wrong doing till today? A case of guilty until proven innocent? Where is JUSTICE?
Point PM to Genneva Customers’ Urgent Appeal at https://gms101.wordpress.com/about/
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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.
Bank Negara Malaysia (BNM) raided Genneva Malaysia Sdn Bhd (GMSB) 1st October 2012, taking away Gold and RM CASH for the so-called “Investigation into the six (6) accusations.”
Q 1: So, after five (5) long fatal suffering months, till to-date, no charge has been made against GMSB, legally, why can’t BNM release all Gold and RM CASH back to GMSB directly?
To answer this question and to understand it, let’s look at the law under AMLATFA 2001.
Section 44 AMLATFA, subsection (1) states: Subject to section 50, where an enforcement agency, having the power to enforce the law under which a serious offence is committed, has reasonable grounds to suspect that an offence under subsection 4(1) or a terrorism financing offence has been, is being or is about to be committed by any person, it may issue an order freezing any property of that person or any terrorist property, as the case may be, wherever the property may be, or in his possession, under his control or due from any source to him.
Section 44 AMLATFA, subsection (5) states: An order made under subsection (1) shall cease to have effect after ninety days from the date of the order, if the person against whom the order was made has not been charged with an offence under this Act or a terrorism financing offence, as the case may be.
Section 50 AMLATFA, subsection (1) states: Where the Public Prosecutor is satisfied on information given to him by an investigating officer that any movable property, including any monetary instrument or any accretion to it, which is the subject–matter of an offence under subsection 4(1) or a terrorism financing offence or evidence in relation to the commission of such offence or which is terrorist property, is in the possession, custody or control of a financial institution, he may, notwithstanding any other law or rule of law, after consultation with Bank Negara Malaysia, the Securities Commission or the Labuan Offshore Financial Services Authority, as the case may be, by order direct the financial institution not to part with, deal in, or otherwise dispose of such property or any part of it until the order is revoked or varied.
Section 56 AMLATFA, subsection (1) states: Subject to section 61, where in respect of any property frozen or seized under this Act there is no prosecution or conviction for an offence under subsection 4(1) or a terrorism financing offence, the Public Prosecutor may, before the expiration of twelve months from the date of the freeze or seizure, apply to a judge of the High Court for an order of forfeiture of that property if he is satisfied that such property had been obtained as a result of or in connection with an offence under subsection 4(1) or a terrorism financing offence, as the case may be, or is terrorist property.
Answer: The Public Prosecutor (through the AG’s office) has the right to hold the gold and money of GMSB for 12 months from the date of the freeze or seizure (i.e. 1-10-2012).
Q 2: Why the Gold and RM CASH have to be recovered from BNM through the Malaysian Court?
Answer: Because we cannot just walk into BNM and demand the seized gold and cash to be returned back to us. Only way is to file a case of Judicial Review (JR) against BNM so that the court may make a decision giving rise to an appropriate order to be given to compel BNM to do according to the terms specified in the court order.
Q 3: If JR is not a lawsuit nor a litigation case, what is it?
Answer: JR is a special relief of the court and hence the court that has the power to deal with JR is the High Court (Special Powers) of the Appellate Division. Whereas for a normal lawsuit or litigation case (or sometimes know as a summons case), the court that deals with such cases would be the Civil Division. See the difference? Therefore even the time frame taken to dispose each case is so much different between the two court divisions. JR may take only a matter of few months and a summons case may take a few years.
Q 4: Is JR the standard and effective course of action through the Malaysian Court where the Malaysian public can act against parties that have done wrong, even the National Banking Giant BNM?
Answer: JR is pretty much the standard and effective course of action if you want to take a governmental authority to court for suspected abuse of power or exercise of bad faith or mala fide in making a policy or decision. Therefore JR is a means for the judiciary to perform checks on the government (i.e. those holding the executive power). It primarily is concerned with the legality of the decision-making process of the government. It is not concerned with the merits of the decision. Hence if the authority acts against or fails to act according to the will of Parliament (through the Acts of law), it is therefore said to be acting ultra vires (i.e. beyond its powers) and is unlawful. If so the court will interfere by reviewing the decision to determine the lawfulness of the decision, actions or omission.
Q 5: Even if the Malaysian Court grants the Gennevarians JR application, what can be expected from the outcome of the JR? Can Gennevarians get back all Gold & RM CASH through GMSB?
Answer: There are three grounds for judicial review, namely illegality, unreasonableness or irrationality, and procedural impropriety. Once the court has identified and found the authority to be guilty on either one of the said grounds, the court has vast powers to deal with the offending authority. Once a JR court action is successful, the court may decide the raid and seizure by BNM to be unlawful and amongst the orders which it is empowered to give are damages, injunction, declaration and etc.
Q 6: Why the JR has to be applied by Gennevarians and not GMSB?
Answer: It must be clear that any party who is directly affected by the BNM’s action can take action. This need not be exclusively for GMSB to take first or Gennevians to do so. Either way, the applicant to the action must satisfy the condition of Locus Standi. Locus Standi means a person who is directly an aggrieved person as a result of the authority’s unjust action and that he has the standing in court to bring such an action against the offending party. It may not preclude GMSB to bring a case of JR against BNM even though Gennevians have done so earlier but so long as it is done within time (i.e. not being time barred).
Q 7: Would the JR applied by GMSB be more effective and proper?
Answer: A JR is a JR, it does not matter who is more effective and proper to bring the case up. So long as the applicant must bear in mind that he must satisfy the locus standi test. Of course GMSB being the direct aggrieved party to the raid is the best case scenario since its locus standi cannot so much be disputed.
Q 8: After five (5) long miserable months, what is the STAND of GMSB towards safe-guarding all Gennevarians’ interests?
Answer: It is pretty much anyone’s presumption that a company doing so well since its inception in 2009/2010 would not only safe-guard all Gennevians’ interest but most of all its own interest since it is the one who has most to lose considering its wide customer/consultant network base that spans throughout the whole of Malaysia. The ability and effort of the HelpDesk that was so quickly established throughout the country is a fine example of how strong that network can be which the company has so painstakingly built up over those years.
Q 9: Again, if JR is not a lawsuit nor a litigation case, will there be court hearings?
Answer: Being a court case, there will of course be court hearings, even for JR. But the case will be inter parte in chambers so there will be no witnesses called and all statements of parties would be done by way of affidavits (i.e. sworn statements).
Q 10: Again, if JR is not a lawsuit nor a litigation case, what is the expected cost on legal fees?
Answer: The expected cost on legal fees can vary substantially between one lawyer to another. It also depends on whether Gennevarians want to go all out for the case or cease all action when we fail to obtain leave of the court to proceed with JR. To “open” the file, one can expect anything between RM20k – RM50k and full disposal of the case from RM300k – RM800k or more. But it is important for Gennevarians to realize what is the purpose and expectations of the JR action as contrast to the final outcome of the case (i.e. winning or losing it).
Q 11: Again, if JR is not a lawsuit nor a litigation case, what is the expected period or duration of this JR?
Answer: Read answer to Q3 above.
Q 12: So, by making the Police Report and paying RM50.00 each, does it mean whatever happens, Gennevarians can recover all MONIES?
Answer: All Genevarians must be prepared to realize (and aware with eyes open) that JR is not an instant elixir or even a silver bullet to get instant and guaranteed result. It does not mean that we are assured to get back all our gold and monies from BNM because there is never a sure win in any court battle. However what is damned sure is that we Gennevarians are not going down quietly. If at all we go down, we will bring those Little Napoleons in BNM as well as the ruling government BN down with us.
- UPDATES: Briefing on How to Get Your Gold and Money Back from BNM
- Now All Genneva Customers Can Support Judicial Review
– Download JR Consent Form | Police Report Templates
- Please Fight Back! 请反击！反击有理!
- Judicial Review for Dummies
FAQ on JR – Chinese version
即使马来西亞允许Gennevarians 的司法审查申请案成立，我们预期从此立案得到什么结果呢？ 是否我们可以从金玉华公司取回所有黄金和马币现金呢？
答：作为一个法庭案件，当然司法审查亦不例外，也有法庭听证会。但是此案件将是内部单方面inter parte 法庭，所以没有传喚证人且所有证词將通过誓章方式（affidavits)，即宣誓证词。
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