Financial Times

Central Bank snubs GoldQuest
Central Bank Governor Sunil Mendis has refused to meet a senior official from the gold coin minting associate of GoldQuest amidst growing controversy about its referral marketing scheme and an advertising war between the firm and the regulator.

"I'm not seeing him," declared Mendis, when contacted by The Sunday Times FT. The Sunday Times FT learns from reliable sources that Mayer Mint had requested via e-mail for an appointment with the governor for an unnamed visiting official 'to establish a relationship' and as a 'courtesy call', which the regulator has declined.

Rowland PR, the public relations firm hired by GoldQuest, was unable to provide any information about the Mayer Mint official's request to meet the Central Bank governor.

The Central Bank has also turned down a proposal by Mayer Mint to set up a mint in Sri Lanka to produce local coins. The Central Bank has said that the required coin production in the country is not sufficient for Sri Lanka to set up a mint.

Mendis said that the Central Bank will only work with government owned mints and not private entities and that there is no change in the policy to continue with Royal Mint, UK which is the regulator's official mint.

The Central Bank has declared that it will go ahead with its public awareness campaigns against pyramid and similar network marketing schemes. Deputy Governor W. A. Wijewardena said: "We will continue public awareness of the dangers of pyramids and pyramid type network marketing schemes."

Meanwhile, GoldQuest has also been relentless in their campaigns and its presenters have been assuring potential customers that it is facing only a temporary setback and that they will carry on. GoldQuest has also been advertising its other products and services such as time pieces, jewellery and vacations.

Presenters at GoldQuest presentations have informed participants that representatives of Quest SAR, the company which is marketing the GoldQuest scheme, have convinced the Controller of Exchange that the total money coming into the country is much more than what is going out.

When The Sunday Times FT contacted Exchange Controller H. A. G. Hettiarachchi, he denied having spoken to anyone from GoldQuest regarding this matter. A senior Central Bank official said that the total money coming into the country is less than three percent of what is going out under the GoldQuest scheme.

Last week, the court rejected an appeal from GoldQuest's shipping firm here to release a consignment of gold products detained by Sri Lanka Customs. "We are proceeding with the revenue fraud inquiry into the import of GoldQuest products, after courts gave the go ahead to the Department of Customs," its Director General Sarath Jayatilake said.

(The response from GoldQuest to our request for an interview with the company will be carried next week)

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