GoldQuest saga rides on

The GoldQuest saga has come to the fore again after the arrest of its chief promoter Vijayeswaran S. Vijayaratnam in Jakarta with his three Filipino business partners.

In Colombo, the Central Bank reopened an investigation into the activities of GoldQuest through its multi level marketing business which has been dubbed a pyramid scheme doomed to fail.

Our story said the investigation was halted soon after Nivard Cabraal was appointed Central Bank governor. Cabraal’s name had figured in some dealings relating to GoldQuest.

The CB probe has re-started with some bigwigs in the corporate sector being questioned and asked to give statements. The question is why was the probe halted in the first place and then restarted? Cabraal, when asked for his comments on the Vijayeswaran arrest, didn’t tell our reporter much except that the Bank had noted the developments.The GoldQuest saga saw many people invest in the company’s multi level marketing schemes in Sri Lanka and many Asian countries through a combination of introducing members to the network and buying limited edition coins and medals, jewellery and time pieces sold through Internet networking.

Thousands invested in the pyramid-styled scheme until The Sunday Times FT and other media highlighted the dangers of such schemes which led to the Central Bank probe where exchange control violations had reportedly taken place since these items were purchased through the Internet in unauthorised deals.

However, Vijayeswaran and his GoldQuest buddies have used varied means to enter the Colombo market. Once the GoldQuest chief bought a stock in Asian Hotels (now Cinnamon Grand) and was aiming to purchase a majority stock which didn’t work out. He may have eventually ended up owning the hotel. The company quietly moved into the Colombo bourse and has been buying stocks in many companies including NDB Bank where the shares were not registered as its funding source was doubtful. It also took a stake in John Keells Holdings.

GoldQuest’s strategy appears to be to gain a foothold in countries like Sri Lanka through legitimate investments like the stockmarket, lie low for a while when its MLM activities draw public and legal scrutiny, and come back with different products when the heat is off.

In Sri Lanka for instance, after the first scheme of GoldQuest products collapsed under Central Bank pressure, the company subsequently came up with another scheme involving phone cards and an international direct dialing facility. That scheme has also been abandoned after Central Bank officials were alerted. Many people burnt their fingers in the GoldQuest scam.
Due credit should be given to a few Central Bank officials who have been following and pursuing the investigation against efforts to stall it from the highest levels.

But Vijayeswaran and his MLM activities are not over, yet. The Malaysian-based wealthy businessman is certain to rise from the latest calamity as he has done in the past. His ‘men’ in Colombo are already proclaiming his innocence. Money talks and works in any part of the world!

For a man who was worshipped by employers during a visit to Colombo and in other capitals, the road to stardom is not over yet despite the bumpy ride. It is important that the Central Bank probe continues without any political interference.