Wednesday October 3, 2012

Genneva’s Singapore subsidiary raided too

KUALA LUMPUR: The Singaporean Commercial Affairs Department raided the offices of the city state's subsidiary of gold trading firm Genneva Pte Ltd.

In a similar operation conducted by the Malaysian authorities on the same day with Genneva Malaysia Sdn Bhd, department officers were seen carting away cardboard boxes and computer hardware from the firm on Monday.

The police action was the latest problem for the firm, which has been unable to meet financial obligations to customers and agents for some months.

In the spotlight: The Commercial Affairs Department raiding the offices of Genneva in Singapore. — The Straits Times / Asia News Network

One customer had previously sued Genneva for S$190,000 (RM472,000) and won a provisional judgment in her favour.

Genneva had written to customers and consultants last Friday, saying the directors had discovered “financial improprieties that led to delay in the payment of discounts and commissions and fulfilment of buy-back guarantees”.

It added that the necessary police reports have been filed. It is unclear if the authorities had acted on the firm's reports or of their own accord.

The letter also asked customers and consultants to remain calm and to cooperate with the company to work out amicable solutions, adding that the company is in the midst of negotiating with an external party to assist them through the financial crisis.

In a move similar to what have been done by Bank Negara Malaysia against the company's Malaysian operations, Genneva Pte Ltd has been placed on the Investor Alert List of unlicensed entities by the Monetary Authority of Singapore. - The Straits Times / Asia News Network