Genneva Malaysia Updates
Genneva Malaysia updates by Bank Negara Malaysia (BNM) shown that more than 8,000 customers of gold investment company Genneva Malaysia Sdn Bhd have yet to receive their gold amounting to over 4,000kg despite having settled their payments.
In a statement, the bank added that company documents seized showed that some customers, who had surrendered their gold to the company, had not received their cash reimbursements amounting to more than RM80mil.
“Initial forensic accounting has uncovered considerable losses experienced by the company this year. The company has liabilities exceeding 10 times its assets.
“Selling gold at about 20% to 25% higher than the market price, paying returns of about 2% to 3% per month to customers and buying back the gold from customers at the initial purchase price has not been a sustainable venture,” the statement said yesterday.
It also noted that Genneva’s operations, as seen from its cash flow, relied heavily on the amount collected from new customers. Genneva had RM99.8mil and 126kg of gold seized, which BNM said were required for investigations and will only be dealt with at the direction of the courts.
Genneva Malaysia updates by BNM.