Money in gold investment scheme stuck in Hong Kong

IPOH-based Bestino Golden House Sdn Bhd cannot fulfil its earlier pledge to return money to investors in a gold investment scheme by April 30 due to some technical issues.

Its managing director Chong Yuk Ming said the money could not be withdrawn from the company’s HSBC Bank account in Hong Kong.

Speaking at a press conference on Wednesday, Chong said he had received a letter dated March 16 from the bank, requesting him to contact a senior inspector from the Hong Kong Narcotics Bureau to resolve the problem.

“Now we need a third party to help us bring the money back to Malaysia.

“But be rest assured, the money is safe in Hong Kong, and I hope the investors will give me another three to four weeks to sort matters out.

“After that, I will inform them of a new date as to when we will return the money. We will definitely pay back everyone,” he said, asking the investors to remain calm.

Chong said he was willing to meet the representatives of the investors at his house in First Garden to explain the latest development.

He also claimed that he had invited the investors to his house for a discussion last week but the group had refused to do so.

Chong was reported on Feb 13 to have promised to return the investors’ money by April 30.

He had said the company would return every sen invested but wanted time as the company needed Bank Negara’s approval to bring US$146mil (RM440mil) from the HSBC Bank in Hong Kong to Malaysia.

The central bank had, however, clarified that its approval was not required and that Bestino was free to return any purported funds claimed to be in existence to the investors.

Last year, Chong and three other company directors were charged at the Ipoh and Kuala Lumpur Sessions Courts with over 300 counts of money laundering and receiving deposits without a valid licence.

The charges were framed under the Banking and Financial Institutions Act 1989 and the Anti-Money Laundering Act 2001.

On Monday, when the April 30 dateline approached, Bestino Golden House Action Committee, a group representing the investors, had given Chong until tomorrow to make the refund to the 6,764 affected people who had invested RM411mil.

Its spokesman K. Gunasegaran said Chong could either bank in the money into their individual accounts or issue a cheque to the committee.

He and a group of about 20 investors had gone to Bestino’s office at Little India, Ipoh, on Monday to meet Chong but found the premises locked.

“We received an SMS from him, saying that he needed another four to five weeks to return the money.

“We hope he will not continue to avoid us.

“If he really needs more time to fulfil his promise, he should meet us this Saturday (tomorrow) to discuss this,” said Gunasegaran.

He also advised investors to keep checking their bank accounts over the next few days in case Chong returned their monies.

“We will go to Putrajaya to meet Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah in the event this problem is not resolved by Saturday,” he added.

The group had on April 22 submitted a memorandum to Ahmad Husni to seek the ministry’s help to solve their problem.