Sunday, January 30, 2011

Bestino- Bank Negara must act!

A meeting was held at Buntong on the get rich quick scheme which has affected many people

Speech I made:

In 2006, Bestino Group introduced a special scheme to attract investments.

The investment scheme offered by this investment company was as follows:-

1. An investor would be given a 3 percent guaranteed monthly return on the amount invested with the company.

At same time a quantity of gold would be given as security for the amount so invested. So if RM 10,000 is invested, a RM 10,000 equivalent worth of gold would be given as collateral. 2. If the gold security is returned to the company the guaranteed monthly return on the amount invested is increased from 3percent to 5percent Later, the company was persuasive enough to ask all investors to surrender the gold in favour of an investment certificate from the company.

As the returns were handsome and consistent, the investors readily surrendered the gold bar. In June 2009, Bank Negara and the Securities Commission launched an investigation on the activities of Bestino Group, following numerous complaints received.

The following is an extract of the then news report:-

“ KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission (SC) has raided an illegal deposit-taking company that is believed to have raked in hundreds of millions of ringgit involving gold investments and the issuance of redeemable preference shares.
The joint operation saw BNM and SC officers raid Bestino Group Berhad and its related companies in Ipoh and Petaling Jaya yesterday.
The raids were conducted following numerous complaints and inquiries from the public who claimed the company promised a whopping 36% dividend a year or 3% returns per month.
“The SC has ordered the company concerned to immediately cease issuing preference shares or securities of any kind to the public with immediate effect.
“Through a scheme it marketed, Bestino Group claimed to be involved in gold investments and the issuance of redeemable preference shares, promising monthly returns of 3% in dividend payments.
“Bestino Group has failed to seek the SC’s approval for the offering of their preference shares to the public and to register a prospectus with the SC as required under the law,” BNM and SC said in statement. ”

All monies of the company were also frozen. Consequently the monthly payment of guaranteed investment return fizzled out and investors were left high and dry.

Many, who invested, some in millions of ringgit, were caught and unable to comprehend the problem.

An action committee was subsequently formed. The action committee co-coordinator Sdr.Lucus said that the Committee had so far had 13 committee meetings. Among the other members of the committee are Sdr. Bala of Merdaka Garden and Sdri. Saraswarthy from PSM.
Today, the action committee organized a meeting to discuss the investors’ plight and the necessary action plans to best protect their interest.

Over 500 investors attended the meeting held at the Arul Oli Mandram Hall in Buntong, Ipoh.

The meeting lasted for over 2 hours and a number of suggestions from the investors were deliberated and accepted.Among others is that the investors will call over at Bank Negara and the Finance Ministry to get the latest.

Over 6,400 people have invested over RM400 million in the said company.

On my part, I will raise the matter and the investors’ plight in the next sitting of Parliament.

26 comments:

  1. I too attended the meeting yesterday and to be socked to hear bad news happening among our indians. hoping the money been return to investors with the hardwork by this committee.
    ragu

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  2. I went to the meeting with a hopeful heart thinking that its an all (races) inclusive joint action committee for Bestino investors but left disappointed as i am Tamil illiterate. Wondered where are the Chinese/Malay investors? I was also puzzled over the apparent silence and inaction from both BNM/SC following their initial investigation on Bestino as there seemed no further updates on BNM/SC website on the status of their investigations. If Bestino's operation was illegal, why is it so difficult to take any legal action to bring those responsible to court and give the investors a justice? After all i believed many investors, like myself, have co-operated with BNM officials when we were beings summoned to help them with their investigations a year ago? Anyway, I hope Sdr. Bala and Sdri Saraswarthy and the Joint Action Committee can constantly update non-Indian investors, like myself, on progress in their undertakings via this blog. BTW, can anyone let me know how, if i need to, to contact the either Sdr bala or Sdri Saraswarthy

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  3. HOW MUCH LONGER INVESTERS HAVE TO WAIT FOR THE REFUND OF THEIR MONEY. WHAT IS BANK NEGARA DOING ?????.PEOPLE ARE GETTING DESPERATE AS THEY NEED THE MONEY TO SURVIVE ESPECIALLY THOSE WHO HAVE NO OTHER SOURCE OF INCOME OR SAVINGS.BANK NEGARA /BN/PKR DO SOMETHING FOR THE RAKYAT IF YOU REALLY CARE.

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  4. Prime Minister and deputy Prime Minister, pls help us to get back our money. My children's education are in trouble.

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  5. we want the MOF to intervened and help all the investors to get back the sum invested in full

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  6. Pls, to all polictians, initiate a new law to punish all agents to prevent future scams occuring in Malaysia again.At present, the directors are only punished the agents go free.

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  7. can anyone please let me know what is happening in Bestino?

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  8. If our PM (The caring person) puts his heart into this, we, the investors will definitely get back our money. Help us dear PM.

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  9. Pls help! my family we facing problem of debts.

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  10. Why, BNM is not bothered about the gold bars. We investors cant make our voices heard, only the politicans can make it heard. Pls politicians, pls at least, ask BNM and all the authorities to start a new investigation. Rm400,000,000+ gold goes missing in a short time and nothing being done.

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  11. Please we all the investor wants Karpal Singh to take this matter up for us. We know that you the only one can speak on our behalf to BNM, why there so much of delay take to investigate the Bestino's matter. Please help us to get back our money.

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  12. The last I heard the 4 Directors of Bestino were being charged in court and the trial was scheduled 11/15th April 2011?
    Can anyone tell me on the outcome.I hope the Government/BNM can seriously look into the interest of the rakyat.Dont wait for the GE13 before starting to champion the victims in your campaign
    because your actions will not be genuine and in poor taste.It will not leave a positive impact to the voters.

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  13. I really hope we can get back our money back. Mistake has been done & realized now. Hope it's not too late.
    Pls keep us updated if there's any upcoming meeting regds to this.
    Hope something miracle could happen to get back all our hard earn money.

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  14. I am also an investor in the above scheme. It seems like there was no problem at all getting our monthly returns until BNM put their head into this matter. Taking back our investment was also easy as they would return back our capital upon surrendering the certificates. So what was the problem ? It is mentioned that BNM took action due to various complains from the public. Well, what was the complaint about ? Did anybody get cheated ? Or was somebody complaining because of jealousy. BNM & the government should act in a more responsible way and find a quick solution to this matter as they are indirectly a contributor to this mess. ????????

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  15. when to gets back our money. my aunti invest my saving money around 17k on december 2008. not much interest gets back. and now third deepawali redy. please help us to gets our money back

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  16. single mom depressed over scam of bestinoNovember 21, 2011 at 2:19 PM

    Dear PM,
    I am a single mom, I lost my husband a doctor in an accident a few years ago.. i was lost n dont know wat to do, till i met a man named mr lee from bestino and he convinced me to invest in bestino has i spoke to him about my problems, i have 2 kidz to feed and they were very small of age 2 and 7 and theres no body to support me and i cant work as i have no parent to help me. So i told mr lee and he promise to give me ahand by putting me into this scam and also promise me should anything happens he would be responsible. Now i'm under a great STRESS and Delima has i needed my RM 1xx,xxx.00. ASAP

    Dearest PM if u could read it and give my plight a help.. i'm sincerely greatful.

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  17. Parallel class action against BN is being organised. A firm of constitutional lawyers are to be appointed shortly.

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  18. Whether endorsed or not by BNM, no difference at all.... Yang pandai menipu dan pandai berpolitik, akan bertambah kaya... yang kena kita semua yang kebanyakan ni....

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  19. pls really bank negara must take action on this issue.There are so much people who are worrying about this proemblem. i believe our pm will take an action soon.

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  20. Bestino siphoned the funds and invested in several used gold mines Papua New Guinea mine and refinery. The CEO also invested in a upscale fertilizer plant in China. How can BNM not know of the huge fund transfer? Investor should ask both the brother and sister who runs the scam.

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  21. PM please help us to gets back our money. we still in dilema I really believe PM to settle our problem ASAP. we cant see any action taken by bestino. only a sms from where also doesnt know. thank u PM.

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  22. please do something 2 gets back our money, how much sweat we spend to earn money.

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  23. Ananymous, Jan 25,2012- 10:04

    Hanya PM seorang sahaja yang BOLEH menyelesaikan isu ini,BNM hanya menerima arahan dari PM bukan dari mana-mana pihak.......... yang hanya berkokok mencari kesempatan publisiti murah demi kepentingan mereka. Wahai PM yang kami sayangi, kami menaruh harapan yang tinggi pada PM cepat-cepatalah selesaikan isu. Kami{ investors ] akan berhutang budi padamu....

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  24. Betulkah kita akan terima bayaran balik dari Bestino pada 30 April 2012?
    HURRAY

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  25. Sudah Kena baru nak menangis. Ada kah dalam dunia 'investment return' macam ini? Dengar cerita durin runtuh, cepat pi masuk duit. Tak tanya pun macam mana dia orang dapat memberi 'return' gila-gila. sekarang minta PM, BNM, Kerajaan pulang duit mereka. Haap sahaja lah!

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  26. Bestino was giving regular interest as promised. Wonder who would complain? Definitely not the investors! Perhaps the banks who were losing money from FD withdrawals by customers for this gold investment. The same thing happened to The Gold Label. Investors were left in the lurch while BNM took its own sweet time to investigate. Was it that difficult when everything was documented? BNM must think of the poor rakyat first by expediting such cases so that the rakyat can get back their money fast! The poor rakyat are the big losers, either way! It's not easy to make ends meet under present economic conditions, esp. for non-Malays and non-Umnoputra Malays. Opportunity just shrinks by the day! See you at the 13th GE!

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