Reps to probe MMM monetary scheme, caution citizens

The House of Representatives yesterday resolved to probe the internet-based wonder bank known as Mavrodi Mondial Moneybox (MMM) so as to save innocent Nigerians from falling prey to fraudsters and further experiencing financial ruin during recession.

Consequently, the lower legislative chamber has mandated its committees on banking and currency as well as that of financial crimes to look into the matter and submit its report in four weeks.

The resolution was sequel to the adoption of a motion of Saheed Akinade Fijabi, APC, Oyo lamenting the widespread acceptance by Nigerians of the unregulated scheme, established in 1989 by three Russian nationals with a promise that participants would make 30 per cent on investment after 30 days.

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

He claimed that the Central Bank of Nigeria had already described it as fraudulent, recalling that many Nigerians had been victims of similar schemes in the past.

According to him, the exercise prides itself as a mutual fund 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.

He added that the scheme entered the country this year, by capitalising on the high level of unemployment and poverty to deceive unwary Nigerians into falling prey to heir antics.

He claimed that the antecedents of the founders could not guarantee security of investment.

“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,” Fijabi stressed.

Also, the chamber cautioned Nigerians against the project, noting that its operators direct clients to make money available for an anonymous person with a promise of 30 per cent returns on investment for 30 days.

Speaker Yakubu Dogara expressed skepticism about the scheme, noting that it could be a ploy to ultimately dupe unsuspecting Nigerians of their hard earned monies.

Leave a Comment