Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Malaysian authorities have intensified a crackdown against fraudulent gold traders with raids against several companies last week.
According to the Malaysia Chronicle representatives of the central bank confirmed on Saturday that police and members of government agencies had staged joint raids against gold investment companies including Pageantry Gold, Caesar Gold and Worldwide Far East.
Earlier in the week members of law enforcement in both Malaysia and Singapore had raided the offices of gold trading firm Genneva, prompted by reports that the company had failed to pay both clients and agents.
The New Strait Times reports that the gold trading companies are alleged by authorities to have engaged in a broad range of illegal activities, including illegal deposit-taking, money laundering, tax evasion and avoidance and false description.
Officers of the central bank say they have received hundreds of complaints from aggrieved investors, who claim that the owners of companies fled without delivery of gold following receipt of payment.
