Arrest Any MMM Scheme Promoters - Reps Orders Law Enforcement AgenciesWith debates still raging on the legitimacy of the popular Ponzi MMM scheme, the House of Representatives on Wednesday, Novenmber 9, ordered law enforcement agencies to investigate the promoters of the “questionable” investment platform.
Also, the Green Chamber called on its committees on banking, currency and financial crimes to launch a probe into the scheme that has gained huge popularity in the country.
The MMM is a money multiplying scheme that promises a 30 per cent interest on investment per month.
And in light of dwindling economic fortunes and general hardship, Nigerians across the board have hopped on it despite warnings from financial experts and the authorities that it is just another Ponzi scheme.
They assert that its operators use money from earlier investors to pay later investors, with the very distinct possibility that it would crash in the near future, PT writes.
Moreover, the business has not been registered with the Corporate Affairs Commission, and those behind it aren’t known to the Nigerian regulatory agencies, including the Central Bank and the Nigerian Deposit Insurance Corporation.
Hence Reps have ordered that members of a syndicate who conduct seminars to train people on how to invest in the business should be arrested following a motion of urgent national importance raised by Akinlade Fijabi from Oyo State.
Mr. Fijabi described MMM as a ‘Rob Peter to Pay Paul Scheme’, claiming that its operators are exploiting the desperation of Nigerians.
Another lawmaker from Enugu, Dennis Amadi, said the House should save Nigerians from themselves, because the collapse of MMM could make many commit suicide.
“The House will not wait until these crooks defraud Nigerians of billions of naira or until people start committing suicide,” Mr. Amadi said.
Adopting the motion, Speaker Yakubu Dogara urged the committee to expedite its investigation and report back to House within four weeks.