Group: Action taken by Bank Negara on Genneva could be a misunderstanding

  • Nation
  • Thursday, 04 Oct 2012

GEORGE TOWN: There are no clear guidelines regulating any aspect of gold trading in the country, according to the Gold Bullion Entrepreneurs Association of Malaysia (GBEAM).

It said the trade had been unregulated since the 1980s.

The association believes in the business model by Genneva Malaysia Sdn Bhd as it was based on a genuine platform.

“The action taken by Bank Negara could be based on a misunderstanding. GBEAM hopes that the Government will provide clearer guidelines to gold traders in the future,” the association said in a statement yesterday.

It added that there had been no negative feedback on Genneva from the customers.

“We were made to understand that there were no police reports lodged against Genneva for cheating,” it said.

In SINGAPORE, two rival gold trading firms are offering “rescue plans” to some customers left in limbo by the legal problems besieging Genneva Pte Ltd.

The Gold Guarantee (TGG) and Asia Pacific Bullion (APB) said that they were willing to step in and act as a bullion buyer and offer alternative investment schemes, reported The Straits Times.

Police raided Genneva's premises on Monday and took away boxes of documents and computer hardware.

Client Rachel Seah, 52, who has invested more than S$200,000 (RM496,126) in Genneva, said she had to invest in TGG scheme for a year.

“What if the company experiences the same problem? I will lose more than I already have lost,” she added.

Genneva sells gold to customers at a premium to the market rate. Both TGG and APB said they would buy back gold from Genneva customers at a premium.

A TGG agent said that the company had a “different management and business line” from Genneva.

Eddy Cheong, head of financial planning at Providend, warned customers against jumping in too fast.

He added that customers had limited recourse when such companies go bust as their activities were not regulated.

The Monetary Authority of Singapore (MAS) also does not accord consumers any protection when they deal with such entities, the paper said.

Genneva, TGG and APB are listed on the MAS Investor Alert List.

Related Stories: Worried investors hope Genneva will be allowed to resume business soon Investors form Genneva support group on FB

Related Stories: Worried investors hope Genneva will be allowed to resume business soon Investors form Genneva support group on FB

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Nation

Fire damages three houses in Penang's Kampung Jelutong Barat
Landslide at Kemensah Heights believed due to underground water flow, says Fire Dept
JKJAV: 238,002 Covid-19 vaccine jabs given on Friday (Sept 17)
Covid-19 screening tests right move to protect Langkawi, says Kedah MB
Covid-19: Death toll reaches 22,743 with 388 total fatalities reported on Friday (Sept 17)
Annuar Musa: Document on Malaysian Family philosophy to be released soon
Shoppers are still cautious
MATTA: Include other destinations too
Businesses restart with safety in mind for staff, customers
Negri to move to Phase Four within a week, says MB

Stories You'll Enjoy