Bank Negara ordered to file defence in RM146 mil Genneva suit

KUALA LUMPUR: The High Court here today ordered Bank Negara Malaysia to file its statement of defence by July 23 in the RM146 million suit by 1,065 investors against gold investment firm, Genneva Malaysia Sdn Bhd.
The suit was filed to claim for over RM146 million in damages against Genneva for alleged breaching of the gold sales and purchase agreements.
Deputy registrar Norfauzani Mohd Noor fixed before or July 23 for BNM to file its defence when the case was heard in chambers today for case management.
Present at the proceeding was counsel James Joshua Paul Raj, acting for the gold investors, and counsel Muhamad Riduan Baba who appeared for BNM.
Met by reporters, Joshua said Norfauzani also fixed Aug 7 for case management. He said BNM also wanted to file an application before Aug 7 to strike out its name as the second defendant in the case.
Last June 30, Murshid Meam Ghouse Musa Meam and 1,064 others as the plaintiffs filed their suits, naming Genneva and BNM as the first and second defendants respectively.
In their statements of claim, they said they had entered into agreements under three categories with Genneva to buy gold products which they did not receive, causing them losses amounting to RM48,816,915 under the first category.
The plaintiffs also claimed that they did not receive the gold bars bought from Geneva or the same value in cash, causing a total loss of another RM81,952,471.
They claimed to have also lost RM15,255,953 when the firm did not receive the purchase price for the sale of their gold, bringing the total amount in losses claimed by the plaintiffs to RM146,025,339.
The plaintiffs also claimed that under the law, BNM was compelled to return the gold and monies owed to them following its raid on Genneva where it sealed the gold, monies and assets seized from Genneva. – Bernama