Financial Times

GoldQuest still keen on NDB

NDB Bank is still checking purchases by two companies and an individual linked to the controversial GoldQuest group as to whether they were acting in concert but a new issue surfacing is whether GoldQuest can invest in banks violating money laundering laws.

Corporate lawyers said while the NDB Bank was probing whether the new investors were acting in concert, the Central Bank needs to clarify whether the investment violated the new Act which bars pyramid schemes and other money laundering avenues.

“The Central Bank should probe this,” one lawyer said.

NDB Bank CEO Nihal Welikala said they were checking out some information about these new stakeholders before registering these shares.

The trio – Fast Gain International Ltd, HSBC International nominee – Credit Suisse Zurich Catana Ltd and Anand Prakash Jagaiah, an investor from Malaysia widely said to be connected to GoldQuest, has little over 9 percent each,

They bought the shares recently from Janashakthi Insurance (17 percent) and GoldQuest (10 percent) who exited from NDB Bank after the latter didn’t register shares due to the two firms triggering the maximum10 percent rule.

GoldQuest, under investigation by the Central Bank, came into focus once again after it recently took over Ferntea Ltd, ousting its chairman and founder, and is also figuring in links to Central Bank Governor Nivard Cabraal when he founded and ran Capital Reach Holdings Ltd.

Asked whether the NDB Bank was tracing whether the new stakeholders were linked to GoldQuest or whether they are acting in concert and could again trigger the 10 percent limit, Welikala said, “We are looking at all issues.”

Jagaiah has repeatedly denied connections to GoldQuest but investigations have proved a direct link between him and GoldQuest with the Malaysian investor serving as a director or linked to many GoldQuest-connected companies like Copyquest, QI, S.A. Sha Copiers (M) and Global V Team Management.

Back to Business