•‘Why going after promoters of MMM, others may be difficult
for FG’
Majestically he stepped into the banking hall exuding the
youthful confidence of a new employee, who had just received his first salary.
Hardly had this young man joined the queue at a new generation bank he had gone
to make a transaction, his phone rang.
With his mobile phone held closely to
left ear, the young man exclaimed in Pidgin English: ‘’ You say wetin? MMM don
crash! How?’’ Surprisingly, this fleeting exclamation sounded like a
thunderbolt at the crowded banking hall, as it birthed commotion that saw
virtually everyone running to nowhere.
Emotionally followed
Not even the bank tellers, security men and other members of
staff, were left out in the ensuing commotion which spontaneously occurred.
Make no mistake about it, this, only occurred in the imaginary world where many
wonder what becomes of Nigerians should the latest money box, Mavrodi Mundial
Moneybox,MMM crashes.
The above scenario, however, depicts how deeply involved
most Nigerians are in the scheme. From Daura to Emekuku, Yola to Abak, MMM is
admired, accepted well-liked, sought-after and emotionally followed by not a
few. So desired and popular it is that it has become a movement competing with
any animate and inanimate brand in Nigeria. Simply put, MMM now stands as a way
of life and path to go by in this part of the globe.
With a reach that is as
wide as its ambivalent configuration, the system, which it’s founders termed a
community, is the trendiest topic at the moment. Its popularity is such that
even those, who don’t participate, have a conventional idea of what it stands
for. Notwithstanding, there are mixed feelings regarding MMM in Nigeria that
even its most ardent followers can attest to.
Nonparticipants and even
participants, who assume to understand the scheme are certainly on the same
page in this respect. The game which had been likened to a Ponzi scheme didn’t
emanate from the moon nor Mars. It was conceived and birthed on planet earth.
The origin of MMM as learnt by Sunday Vanguard could be traced to Russia where
it was founded in 1989 by Sergei Mavrodi, Vyacheslav Mavrodi, and Olga
Melnikova.
Though the company was found to have had the most successful Ponzi
schemes in the 90s, it was learnt that it was shut down by the Russian
government in 1994 over tax evasion allegations after which it was declared
bankrupt in 1997. Basically, everything about the scheme which is believed to
be a pyramid revolves around investing a certain amount of money and getting a
higher percentage of the deposited fund.
Writing in a piece entitled: Fool Me
Twice, Shame On Me: Russians Fall Once Again for Notorious Ponzi Scheme, Igor
Ogorodnev noted that the founders relaunched a similar scheme in 2011, enticing
investors with interest rates of 40 percent a month.
However, with questionable
successes in South Africa, India, and Zimbabwe, MMM Nigeria was launched in
early 2016 describing itself as a community of ordinary people, selflessly
helping each other. On its website: MMM-Nigeria.net, Sunday Vanguard observed
that it also prides itself as a Global Fund of mutual aid which promises 30
percent on every amount committed but with a caveat that the scheme is not an
investment programme. mmm
Unverifiable claim
With the unverifiable claim of being in 118 countries and
having over 200 million participants of which Nigeria accounts for more than
two million people, the goal of the scheme as found on its Nigerian website
read thus: “The goal here is not the money. The goal is to destroy the world’s
unjust financial system.
Financial Apocalypse!” Scary, many would say, but that
is the typical tone of the messages on the site. If the aforesaid left you
surprised, consider this: ‘’ There is no formal organization, no legal person
in MMM. And of course, there is no central bank account, no other activity in
any form. Neither close nor open. There is nothing! There are only millions and
millions of simple participants, simple private persons. And their bank
accounts. And nothing more.”
11th most visited website in Nigeria
These, notwithstanding, findings by Sunday Vanguard revealed
that the scheme has grown so popular in Nigeria that it has more than two
million subscribers in the country with participants cutting across different
social strata. A check on the website of California-based company that provides
commercial web traffic data and analytics, Alexa, showed that it was rated the
11 most visited website in Nigeria and 3,921 globally.
Accordingly, it was
discovered that the number of people, who navigate away from the site after
viewing only one page is 51.80 percent while about 2.26 million people were
noted to visit the site daily from Nigeria. Alexa further observed that daily
time spent on MMM Nigeria by a visitor is 4:31 seconds, indicating that
Nigerians, spend appreciable time daily from a web analytics standpoint.
Demographically, Alexa noted that a larger percentage of the audience which is
94.9 percent male Nigerians with college degrees. Those, who visit the Nigerian
site from the United States were found to constitute 1.6 percent while those
from the United Kingdom are 0.9 percent. This data as obtained by Sunday
Vanguard is a confirmation of how Nigerians have become so engrossed with MMM
simply because of the 30 percent bonus that comes from participating.
How MMM works
For those, who hardly know how it works, a further check on
MMM site revealed thus: ‘’How does it work technically? You declare the
willingness to give help (click in your Personal Office, Provide Help, after
which your account will be rewarded with Mavro (internal “currency”/scores of
the System. Mavros will start growing from the moment of offering the
contribution at the rate of 30 percent per month.
Calculation of reward occurs
twice a week, on Tuesdays and Thursdays at 00:00 GMT. This sum in Mavro shows
how much you can request for yourself. ‘’Say you have announced willingness to
assist with $ 100. You will be rewarded in your PO with 100 Mavro. And they
will immediately start growing. A month later, these 100 will become 130 Mavro.
Accordingly, you will be able to request assistance for $ 130. ‘’However, it is
not necessary at all to wait for a month. Help can be requested at any time.
But only after confirmation of your Mavro. What does “after confirmation” mean?
It means only after you actually transfer money, by giving assistance to
another participant.
Request for providing help comes to you in your personal
office. If you do not do it within 48 hours, you will be removed from the
system for eternity. In cases of any matter regarding the topic our online
consultants are ready to help and answer all your questions.”
Contact address of promoters
Indeed, Sunday Vanguard can testify that so many Nigerians,
who engage in the scheme through this process, receive bonuses but there are
concerns over what becomes of the committed funds should anything happen to the
website which is the only platform with which to interface. The fear is real
even among participants, who are aware of the fact that there is no one to hold
responsible should the site crash the way it reportedly happened in Zimbabwe
where thousands of investors were left distraught.
For instance, further check
by Sunday Vanguard on its website showed that the scheme has no contact
address, as the contact column only provided where subscribers could write
feedbacks or complaints in specified columns. A functional addressee like email
and phone numbers of the promoters were not found on the site.
This further
corroborates the concern of investors and noninvestors about what happens in
the event of eventuality, given that Ponzi schemes lack longevity. mmm1 Ponzi
schemes lack longevity Certainly, it is the realisation of the inherent disadvantages
that the Central Bank of Nigeria, CBN, and the House of Representatives,
cautioned Nigerians against continuing with MMM.
“At times like this when the
economy has suffered some decline, Nigerians should be very careful with those
they deal with. Any institution that is not licensed by the CBN to accept
deposits should not be given money to keep under any guise,” the CBN said
through its acting Director of Corporate Communications, Mr. Isaac Okoroafor.
Despite these warnings, Sunday Vanguard findings showed that the number of
Nigerians participating in it is increasing daily making the scheme the most
talked about issue among most sections of the society. At the moment, out of
every 10 Nigerian youths, six participate in the scheme, confirming that many
have refused to heed warnings from the authorities.
Ignorant of inherent risks
Most participants, who spoke to Sunday Vanguard did not
claim ignorance of the inherent risks but they simply said it was the only
viable way of surviving the economic crisis in Nigeria. To them, MMM is
assisting in cushioning the effects of the high cost of living in the country
and the high rate of inflation which had negatively affected the purchasing
power of Nigerians.
As far as many are concerned, the scheme should be enjoyed
while it lasts, even as they told Vanguard that they had prepared themselves
for the worst which could happen anytime. A Lagos-based participant, who became
an MMM investor in March 2016, Mrs. Agnes Malobi told Sunday Vanguard that so
long as there has not been any case of disappointment recorded in MMM Nigeria,
she would remain a participant until the worst happens.
“This is real. Forget
about what the government is saying, MMM is even more preferred now than the
government. The APC government is confused and has unleashed hunger on
Nigerians, so, they should not be talking because Nigerians have found a way to
survive. I was introduced to MMM in March and I started with N50, 000 because I
was not too sure of it. After 30 days, I was given N74,000. My second attempt
with N50, 000 yielded the same amount.
It was from that moment that I started
investing big money and I am reaping big results. I make thousands but I
understand that people now make millions on the scheme,”. Malobi, who works
with a para- military agency said.
A member of National Youth Service Corps,
NYSC, Miss Chinelo Umeh, told Sunday Vanguard, that she regretted not starting
early, adding that her peers, who daringly got involved early have made good
money. Umeh, however, noted that since she became a participant in July, she
has become financially independent.
Leave MMM alone
“Oga journalist, please I want you people to tell the
government to leave MMM alone and concentrate on governance. Nigerians are
suffering, there is hunger even in Ogun State here where I am serving, hard
times are evident. I regret not getting involved in MMM early when the
promoters were organising seminars.
My fellow corps members, who were not
scared, started then and they are very okay now. As I am talking to you now, I
no longer spend my monthly allowance which is the only thing we get here
because the state government does not pay an allowance to corps members,” she
stated.
Asked if she was not scared of losing her money, the graduate of
Economics from one of the universities in the South East geopolitical zone,
said: “I did research on MMM, even though it has a bad public image globally, I
elected to participate because I saw evidence that it was giving people the
pledged 30 percent bonus.”
Questionable practices by some investors
Further interaction with some investors, revealed that the
interest of the government and some questionable practices by some Nigerian
investors are beginning to make some consider quitting the scheme. Mrs. Charity
Adamu, who works with a traveling agency, told Sunday Vanguard thus: ‘’I did
not start early, but I have made a reasonable amount of money within a short
time.
My younger sister, who introduced the scheme to me started early and is
now financially stable to the extent that she longer asks me for money. She
even provides financial assistance to our extended family members. When I
receive my money next week, I will stop being a participant because of the
warnings by the government and the attitude of some Nigerians.” Explaining further,
she said: “Some people have become insincere.
They no longer follow the rules
because one is required upload a bank teller confirming that payment had been
done. It is that teller that would show that the person had done his
obligation, but some people no longer do that. Rather, they upload a written
note stating that they would pay later. In that process, the other person’s
money would be delayed for up to two weeks or more.
I am done with it because I
am sure that the end is not far in sight.” Asked if there are MMM officials,
who entertain complaints from customers, she said: ‘’There are people who are
called guardians. Each participant is provided a guardian, who would assist
should there be any challenge.
Those guardians are also participants.’’ Apart
from these, respondents to a question posed by Vanguard online seeking to know
the impression of Nigerians about the scheme revealed that Nigerians are
divided on whether the government should ignore the scheme.
‘Federal Government should study MMM’
While many want MMM ignored, others urged participants to
quit participating in the scheme noting that its eventual end would leave
investors stranded. Consider the positions of two online respondents, who spoke
for and against the scheme in Nigeria. Ezeilo Chibuike argued thus:”Can we look
at MMM as a Cooperative Society which is guided by a bye-law created by the
people for the people. And if the cooperative still works in Nigeria then MMM
is not a scam.
I can defend this with the cooperative law. If our financial
Institutions are being threatened by the MMM scheme, what they simply need is
to create an innovative idea around the MMM system. To me, I think this is the
time for financial institutions like banks to make high profit. The government
should use this opportunity to build our great nation.
The federal government
should study the system and understand how it works. I was forced to study the
system by my clients and friend because they needed my advice and I think is a
good one.” Another person, who identified himself as Trumpet, said: “Flee,
flee, flee and report anyone that tries to bring you into this business.
Don’t
mind some of the people online using different handles to deceive people and
thwart government’s effort to bring the evil people to book. They should be
arrested now before they destroy you and your honest fellows.” While the
Economic and Financial Crimes Commission, EFCC, had said it was investigating
the scheme, Sunday Vanguard can authoritatively state that the faceless nature
of the promoters, may not allow for proper investigation into the scheme.
People embracing new schemes
The House made a resolution but the resolution is a public announcement. We have always been advising people not to patronize wonder banks because experience over time has shown that their activities are not sustainable. If you get involved in it, you will eventually get hurt. What we are currently doing is to sensitize people.
We know people want to make quick money as a result of recession through this MMM.The unfortunate thing about this MMM is that it is not a Nigerian firm but we are looking at and we will still tell the media whatever we find out,” EFCC’s Spokesman, Wilson Uwujaren, said.
While the beat goes on for the participants of MMM, Sunday Vanguard further discovered that Nigerians have also embraced other Ponzi schemes that promised higher percentages of any amount of money invested.
Those found to be trending include Get Help World Wide, Me to You, Givers Forum, Ultimate Cycler, Help to Get and Icharity.com. They were found to have the same modus operandi like MMM but have less patronage like the later.
Source:Vanguard
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