RBZ warns against pyra­mid schemes

Chronicle (Zimbabwe) - - Business Chronicle - Bianca Mlilo

THE Re­serve Bank of Zim­babwe (RBZ) has warned the pub­lic against par­tic­i­pat­ing in pyra­mid and ponzi schemes that fleece them of their hard-earned money by promis­ing “very” high in­vest­ment re­turns.

In a state­ment yes­ter­day, the RBZ said it has come to their at­ten­tion that MMM Global, whose founder was once con­victed and jailed in Rus­sia for de­fraud­ing thou­sands of in­vestors in a ponzi scheme, has es­tab­lished a lo­cal chap­ter called MMM Global Zim­babwe.

It said pyra­mid and ponzi are fraud­u­lent in­vest­ment schemes un­der which ex­ist­ing in­vestors are paid re­turns, not from gen­uine mar­ket in­vest­ment of their funds, but from con­tri­bu­tions made by new in­vestors, un­til a point when the scheme can no longer at­tract new in­vestors.

“RBZ wishes to warn mem­bers of the pub­lic against par­tic­i­pat­ing in pyra­mid and ponzi schemes that come in var­i­ous forms and guises and are lur­ing peo­ple to in­vest or con­trib­ute their hard-earned money, promis­ing very high in­vest­ment re­turns.

“MMM Global Zim­babwe isn’t a reg­is­tered or reg­u­lated en­tity in the coun­try. It ad­ver­tises its op­er­a­tions through a web­site and through re­cruit­ing agents op­er­at­ing in var­i­ous cen­tres of the coun­try.

“It has no of­fi­cial of­fices or of­fice bear­ers,” the Re­serve Bank said.

Since MMM Global Zim­babwe was not reg­is­tered un­der any law, RBZ said its ac­tiv­i­ties were not reg­u­lated or su­per­vised by any au­thor­ity in the coun­try, adding that the pub­lic was be­ing ad­vised against putting their hard-earned money in this or sim­i­lar struc­tures.

“Those who in­vest in such schemes do so at their own risk and may find them­selves without le­gal re­course when they lose their funds.”

The scheme ad­ver­tises it­self as a “mu­tual aid fund and a so­cial fi­nan­cial net­work” un­der which re­cruited mem­bers con­trib­ute their “spare money” to “as­sist” oth­ers, and are promised in­vest­ment re­turns rang­ing from 20 per­cent to 100 per­cent per month.

“Tes­ti­monies by the priv­i­leged early mem­bers who would have ben­e­fited from the scheme, are of­ten used to lure new re­cruits. Ponzi and pyra­mid schemes aren’t sus­tain­able be­cause, even­tu­ally and in­evitably, they run out of new re­cruits lead­ing to their col­lapse, with most con­trib­u­tors los­ing their funds. This has al­ready hap­pened in a num­ber of coun­tries where MMM Global has chap­ters,” it said. — @Bian­caMlilo drawn from an en­vi­ron­ment with which the stu­dent was fa­mil­iar with and to which he/ she could re­late and ap­ply his/her learn­ing Ed­u­ca­tional Con­sid­er­a­tions Trans­fer of skills (ques­tion set­ting, mark­ing and grad­ing from for­eign­ers to lo­cals. In­creased con­fi­dence in the ed­u­ca­tion field as lo­cals be­came more and more con­fi­dent in han­dling ex­am­i­na­tions is­sues. Po­lit­i­cal Con­sid­er­a­tions Lo­cal­i­sa­tion would en­sure the end of ed­u­ca­tional Im­pe­ri­al­ism in Zim­babwe Bench­mark­ing and Stan­dards South­ern Africa As­so­ci­a­tion for Ed­u­ca­tional As­sess­ment (SAAEA). Re­search Fo­rum, Stan­dards Com­mit­tee, Re­sults Based Strate­gic Plan (2014-2018). Z IMSEC Strate­gic Plan (2015-2018). Ex­am­i­na­tion Boards: ECOS, ECOL, ECZ, MANEB, NECTA, KNEC, UNEB, CIE, CXC, WAEC, (UMALUSI), Na­tional Aca­demic Recog­ni­tion In­for­ma­tion Cen­tre (NARIC) since 2002 (now an an­nual event af­ter ev­ery Novem­ber Ex­am­i­na­tion FU­TURE PLANS Es­tab­lish­ing a state-of- the-art print­ing fa­cil­ity to en­hance ques­tion pa­per se­cu­rity and prod­ucts such as syl­labi and past ques­tion and an­swer book­lets. This fa­cil­ity, once es­tab­lished, will also re­duce the re-cur­rent ex­pen­di­ture of the Coun­cil by 30 per­cent — 40 per­cent. Ac­qui­si­tion of bet­ter op­er­at­ing premises both at Head Of­fice and in the Re­gions. Pro­duc­tion of book­lets on Ex­am­i­na­tion Tech­niques cov­er­ing com­mon sub­jects. In­tro­duc­tion of Grade Maker for ques­tion pa­per set­ting In­tro­duc­tion of Grade Maker 2 to fur­ther en­hance the E Mark­ing

The Zim­babwe School Ex­am­i­na­tions Coun­cil is cel­e­brat­ing 20 years of qual­ity As­sess­ment. For more in­for­ma­tion, com­ments or con­tri­bu­tions please email pr.in­for@zim­sec.co.zw or What­sApp 0772148786

Peo­ple who lost money to GeoZing Pawn­bro­kers, a col­lapsed pyra­mid scheme, fol­low pro­ceed­ings dur­ing a meet­ing at the Am­phithe­atre in Bulawayo

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