The house of Representatives in Abuja on last Wednesday has passed a resolution to investigate the operations of the internet based wonder bank, popularly known as “ MMM Nigeria Scheme” in order to prevent innocent Nigerians from falling prey to fraudsters at this period of economic recession.
The House immediately mandated the committee on banking and currency as well as the House committee on financial crimes to investigate the operations of the wonder bank and report back to the House for further legislative action within the next four weeks.
This follow the adoption of the motion sponsored by Hon. Saheed Akinade Fijabi, a member of APC, from Oyo State, lamenting about the wide acceptance by Nigerians of the unregulated Mavrodi Mondial Moneybox scheme, popularly known as MMM which was founded in 1989 by a Russian citizen and two other co-founder from Russia with a promise that participants in the wonder scheme will receive 30 per cent on investment after 30 days.
He said any Nigerian participating in the MMM scheme which has no official law stand the risk of losing his/her investment as there is no identifiable platform to guarantee the security of the invested money.
He added that the central bank of Nigeria (CBN) has described MMM as fraudulent, gave instances that many Nigerians had been victim to such scheme in the past like; wealth creation, the Wes solution and pennywise, all in the name of making fast money.
According to the law maker, the MMM scheme prides itself as a mutual fund in which the recruited members put in money in form of help with no intension to engage in banking business.
But the scheme’s structure and operations allow their clients to have multi-level structures under them which enable clients to receive bonus (in percentage) from each financial transaction of every participant in their structures.
He further explained the scheme focused the Nigerian circle this year, due to economic recession which led to the high level of unemployment and poverty to deceive unvigilant Nigerians into falling prey to their antics.
Fijabi also said the antecedents of the founders of MMM scheme cannot guarantee security of the money invested in the scheme in the long run as reports revealed that similar schemes by the same founders was launched in Russia where investors lost their monies worth millions of dollars.
He added that the government of China banned the operations of MMM on the ground that it was unregistered payment pyramid scheme in the country which is liable to cause financial havoc in the system.