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Published: Monday December 3, 2012 MYT 6:22:00 PM
KUALA LUMPUR: Genneva Malaysia Sdn Bhd sustained considerable losses in 2012 and it had liabilities exceeding 10 times its assets, according to the enforcement agencies.
In their update on Monday following the recent raids, initial forensic accounting uncovered considerable losses in Genneva Malaysia for 2012 and its operations were not sustainable.
They said the company was selling gold at about 20% to 25% higher than the market price and paying returns of about 2% to 3% per month to customers. Genneva Malaysia then bought back the gold from customers at the initial purchase price.
"In this regard, the cash flow for the company to sustain its operations has relied heavily on the monies collected from new customers," according to the statement issued by Bank Negara Malaysia, the police, Ministry of Domestic Trade, Cooperative and Consumerism and Companies Commission of Malaysia.
"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 4,000kg.
"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 RM80mil," they said.
The agencies had received numerous appeals from affected parties in respect of Genneva Malaysia, for the release of monies frozen (RM99.8mil) and gold seized (126kg) 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," they said.
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