AUTHORITY WARNS PUBLIC AGAINST POLITICAL PARTIES

To be perfectly clear, nowhere does the Competition and Consumer Authority mention any political party in its latest consumer alert. However, it is perfectly clear that the alert is warning members against the sort of pyramid schemes perpetrated by political parties. e Authority says that it “has observed that there is continued participation in pyramid and related scheme activities in Botswana”, expresses “serious concern that some members of the public are still participating in ... pyramid and related schemes.” In describing such schemes, CCA says that they “promise high returns in a short period of time, and the primary emphasis is on recruiting more members to earn proceeds.” It goes farther to warn that “the high returns promised cannot realistically be achieved through normal investment, and in most cases the promoter will use false or misleading conduct. The promoters often promise guaranteed returns while secretive about the actual business model.” This is apt description of how political pyramid schemes work. A pyramid scheme is a fraudulent scheme that promises heaven and earth but delivers nothing – as when a party or its candidates promise to put infrastructure and create jobs within ve years but fail to do so. Structurally, it is composed of multiple membership levels and at the apex sits the one person who bene ts from this scheme – think paid MP sitting atop unpaid members of the constituency, ward and cell committees - and voters. Parties build up the pyramid by recruiting more members with promises of infrastructural developments, jobs and favourable consideration for business opportunities. The Authority would like political parties to know that “the Consumer Protection Act of 2018 prohibits pyramid and related schemes.” It also warns members of the public that “participation in a pyramid scheme [ in particular, any such activities that promise unrealistic quick returns on purported investments] either through joining, promoting or inviting someone to join the scheme is an offence.” The latter certainly refers to house- to- house campaigns, political rallies and soliciting Facebook page likes.