Business News of Wednesday, 10 May 2017
The Bank of Ghana (BoG) has cautioned the public against doing business with ponzi scheme, MMM.
The caution comes after calls on the Central bank to halt the operation of the company following concerns over its credibility.
It is not clear whether the Bank of Ghana (BoG) has stepped in to halt their operations as they are mostly done in a virtual manner.
But a statement from the central bank and copied to Citi Business News said that MMM’s operations are contrary to section 6(1) of the Banks and Specialised deposit taking institutions Act.
According to the regulator, MMM’s operations also ‘threatens the safety and soundness of Ghana’s financial system.’
The BoG further warned that anyone who does business with MMM does so at his or her own risk.
3 million Nigerians lose N18 billion
The operations of MMM in West Africa first came up when it was discovered that it had started in Nigeria in the early part of 2016.
Nigerian authorities have been facing stiff opposition in an attempt to clamp down on the activities.
According to the opponents, MMM was stepping in where government had failed to provide gainful employment and basic means of livelihood to its citizens.
Currently, Nigeria’s Deposit Insurance Corporation, NDIC, says three million Nigerians have lost 18 billion Naira to the scheme.
BoG collaborates with allied institutions
It is unclear when the scheme commenced operations in Ghana but checks from its website indicate that hundreds if not thousands have already hooked onto the ponzi scheme.
Many concerns were raised for the Bank of Ghana to nip a possible infiltration in the bud and protect Ghana’s financial sector.
The Director of Communications at the Bank of Ghana, Bernard Otabil explains to Citi Business News that the central bank has since engaged other institutions to stop the operations due to its complexity as MMM operates a virtual system.
“We have taken the necessary steps to ensure that the institutions that we collaborate with are actually informed about the activities if this particular company. We have also cautioned the public and have taken steps to find those who are behind the company and apprehend them accordingly,” he asserted.
The ponzi scheme which was founded some twenty-eight years ago in Russia, currently operates in one hundred and eighteen (118) countries including five African countries.
MMM entices people by promising them a 30 percent return after giving out an amount of money to support others.
This, the scheme says is to ‘destroy the world’s unjust financial system.