Singapore bank closes 2 accounts of Speak Asia

Simultaneously,Mumbai-based Investors’ Grievances Forum has sought a probe into the “illegal activities” of the company in India. In the Speak Asia scheme — which is a chain marketing scheme — the joining fees of new members act as the return on investment for older ones. As soon as the enrolment stops,the income also stops.

UOB sent a notice to Speak Asia saying that its two accounts will be closed on May 27. The company has no registered offices in India and all its activities are funded from Singapore. “Two days is simply not enough time for us to arrange suitable alternative to safeguard the financial interests of panelists and their families,” Speak Asia said in a letter to the bank.

Speak Asia tried to put a brave face. In a statement issued in Mumbai on Friday,Manoj Kumar,CEO (India),Speak Asia,said,“We would like to categorically state that our bank account in Singapore has not been frozen. Apropos a communication received from our existing banking partner,we are only moving our company account to another bank.”

“We are approaching and evaluating various other banks in Singapore from where we will soon be able to disburse the payments to all panelists. Also,we would like to reassure that the panelists’ money is safe. Towards this,we are trying to open an escrow account in order to further protect their interests,” Kumar said. However,it did not say where and how they are trying to open a new account. With the closure of the UOB accounts,further payment to its ‘panelists’ will also stop.