Bank Negara urged to speed up Genneva investigation

A senator says the central bank should resolve the activities of the gold trading company as many investors are affected.

by M Krishnamoorthy

PETALING JAYA: Bank Negara Governor Zeti Akhtar Aziz should expedite the central bank’s investigation into Genneva’s Sdn Bhd gold trading activities.

Senator S Ramakrishnan said it has taken Zeri two months and still the issue has not been resolved.

Billions of ringgit of the savings of some 60,000 Genneva’s customers has been frozen by Bank Negara since its raid about two months ago.

“As the central bank your enforcement officers had raided, frozen accounts, investigated and checked the accounts books. If the company has defaulted, reprimand the directors by issuing a warning, fining and let them operate under your watchful eye.

“ The central bank must act fast to release the money and gold that BNM had seized, as these are working money for those who depend on it to pay all sort of household bills, ” Ramakrishnan said.

In fact, Zeti had pledged three weeks ago to expedite its probe into the controversy behind gold trading company Genneva Malaysia, and said: “We are expediting all investigations so that we can come to an early conclusion.”

“Genneva’s syariah hybrid savings scheme facilitates the growth of the GDP. People save and spend more in the country and GNP grows through the multiplier effect of savings, unlike banks which pay 3% and limits the expansion of the economy. More than RM4 billion worth of gold has been sold and this was bought through the local banks.” he said.

Bank Negara has victimised only four of the gold trading companies while it has put about 70 gold trading companies on its alert list.

Genneva’s customers are neither “depositors” nor “investors”. They are merely customers who bought gold from Genneva with their life-savings.

Genneva’s syariah compliant gold was officially launched by former Prime Minister Dr Mahathir Mohamad, on Dec 15, 2010.