BNM’s INVESTIGATIONS HURTS INVESTORS AND GDP’S GROWTH
Bank Negara’s raid against Genneva and other gold companies has caused grave harm to tw0 million investor’s life time saving. While it is appreciated that Bank Negara intervened to curb malpractices such as money laundering, misrepresentation and failure to submit documents, the central bank has failed in safeguard and protect the investors’ lifelong savings. Does it serve any purpose in wanting to adhere to the rule of law precipitating grave pain and suffering to about 2 million dependents of investors? BNM has failed to communicate and alert the investors on the illegality of these operations. BNM should have the maturity and tenacity to act decisively on the promoters and managers with minimum hardship and damage to about 200,000 gold investors.
BNM should have given a grace period to the Genneva management to return the investments. During this grace period BNM should conduct their investigation and identify the legal loopholes and arm themselves to prosecute the management. Instead BNM freezed all assets and caused untold financial problems to their investors. Worse still, customers were told that Bank Negara had carted away about 200 kilograms of gold and cheques which were due to be given to investors. If the Government does not allow the cheques to be disbursed then the expansion of the economy will be curtailed. Crying foul, investors have cried out in The Star: “Please do not take away our money and gold.”
Genneva’s Syariah compliant gold was officially launched by former Prime Minister Tun Dr Mahathir Mohamad, on Dec 15, 2010. See YouTube: (http://www.youtube.com/watch?v=b0-Nso97tD8). The former King, Datin Seri Rosmah, royalties and other prominent BN personalities have graced Genneva’s dinners and official events. How is that an operation which is deemed illegal has so many dignitaries officiating the so called illegal companies programs and functions. The attendance of the ruling party dignitaries has given the impression to investors that Gennava management has the approval, support and acceptance of the government.
Genneva’s business model is praised as revolutionary, innovative and true to its spirit – a blue-ocean business strategy. It is for this reason; Prime Minister has called on entrepreneurs to introduce innovative products for the expansion of the Gross Domestic Product (GDP). Looks like BNM was sleeping all this while and when they suddenly woke up to the thriving gold trading they suddenly realized the illegality of the operation. Gold trading is permissible and there is no restriction on it, as confirmed by a letter written to Genneva by the Finance Ministry.
With so much blatant oversight on the part of BNM and ministry of finance why these harsh and uncompromising actions on the investor’s money? BNM should make all effort to return the monies of investors to reduce the financial burden of Malaysians.From the desk of Senator S Ramakrishnan comment below, or link to this permanent URL from your own site.