Reps To Probe Operations of ‘MMM’ Scheme | Independent Newspapers Limited
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Reps To Probe Operations of ‘MMM’ Scheme

MMM-1
Posted: Nov 10, 2016 at 4:19 am   /   by   /   comments (0)

 

 

Ahmed Musa

 

Abuja – The House of Representatives on Wednesday resolved to investigate the operations of an internet based wonder bank, otherwise known as ‘MMM’ scheme, in order to save innocent Nigerians from falling prey to fraudsters and further experiencing financial ruin exacerbated by the economic recession.

To this end, the House has mandated its committees on banking and currency as well as that on financial crimes to investigate the operations of the “wonder bank” and report back to the House for further legislative action within four weeks.

The resolution followed the consideration and adoption of a motion on notice sponsored by Saheed Akinade Fijabi (APC, Oyo) complaining about the wide acceptance by Nigerians of the unregulated Mavrodi Mondial Movement scheme, popularly known as MMM, which was established in 1989 by three Russian nationals with a promise that participants in the wonder scheme will make 30 percent on investment after 30 days.

Fijabi observed that every Nigerian participating in the MMM scheme which has no legal backing is vulnerable to losing his/her investment as there is no identifiable platform to guarantee the security of the invested funds.

Already, he declared that the Central Bank of Nigeria (CBN) has described the scheme as fraudulent, recalling that many Nigerians had been victims of similar schemes in the past, such as the Wes Solution, Pennywise and Wealth Creation, all in the name of making quick money.

According to him, the scheme prides itself as a mutual fund assistance through which recruited members contribute money in form of assistance without any intent to engage in banking business.

“But the scheme’s structure, operations and intendment indicate otherwise as their clients can have multi-level structures under them and receive bonus (in percentage) from each financial transaction of every participant in their structures”, he said.

The scheme, Fijabi added, entered the Nigerian circle this year, by capitalising on the high level of unemployment and poverty to deceive unwary Nigerians into falling prey to their antics.

He argued that the antecedents of the founders of the scheme cannot guarantee security of investment in the scheme in the long run as reports indicate that similar schemes by the same founders had been launched in Russia where investors lost their monies running into millions of dollars.

“It is worthy of note that the government of China banned the operations of MMM on the ground that it was a payment pyramid scheme without registration in the country and has the capacity to cause financial havoc in the system”, the Oyo-born lawmaker maintained.