GoldQuest told to give client list

GoldQuest was asked by the Dubai Department of Economic Development (DED) to hand over a detailed list of its clients starting Saturday, according to a DED spokesman.

Many GoldQuest 'partners', meanwhile, had been gathering at the company's premises from yesterday morning worried about the blockage of the website through which the network marketing scheme works.

Company officials held a series of meetings among themselves and with their lawyers and DED compliance division officials at the premises. DED officials were seen at the office since morning talking to partners.

"We are looking into ways to ensure the rights of the consumers, including that of imposing a bank deposit so that customers feel comfortable and make sure the company complies to consumers' rights."

But to that, the DED spokes-man made no comment. He said: "Members of the public were free to file complaints, if they wished to DED employees."

He also did not clarify whether the company would be closed down as per the 48-hour notice. DED will not decide on the withdrawal of the trade licence until it gets all necessary details and gets a clearer picture.

The barring of GoldQuest website effectively blocks its operations. GoldQuest has a representative office of the Hong Kong company and, under the law, can only promote its services without making local deals.

As a licensing authority, DED can take action it deems suitable even while investigations are on, the spokesman said. "As a licensing authority, we were entitled to bar the website because we had received complaints that the company activities were disturbing the market."

Meanwhile, a company official, who was negotiating with DED officials, said the firm was still not clear about the complaints.

"We received a DED notice two days ago saying they are investigating. But up to this point, we are still not clear what the charges are," said Jose Fabregas, Gold-Quest network development director. "We are co-operating fully with the government on the investigation."

The DED spokesman was sure the mother company had a client database through which all information on local clients can be collected. "The required list should have clients' names, commissions received and dues that were not received.

"We do not know how many people bought gold coins and how many had or not received their entitlements. We do not even know who were and were not the exploited clients."

ON the legal nature of the company's activities, the spokesman said, "It had a negative impact on the market and this compelled DED to follow it up."

Meanwhile, Tawfique Abdullah, chairman of Gold and Jewellery Group, urged customers to check gold price before buying coins. "Consumers are urged to check market gold price before buying them at a higher price. Please do not be mislead."

"Numismatic or commemorative coins might add value to coins. But that should not exceed 5 per cent of the gold value. Besides, consumers are entitled to get their products delivered right after payment are made and not after a few weeks," he said.