MMM Social Funding: Forget it is risky, we make millions every two weeks —Defiant Nigerians
‘Why going after
promoters of MMM, others may be difficult for FG’ By Charles Kumolu
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.
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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.
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.
ALSO READ Your point of View on the MMM scheme, and the arrest of MMM promoters as ordered by the NASS.
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.
DON'T MISS THIS: WHY MMM-NIGERIA WILL NOT CRASH | MMM Community
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. 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.
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RECOMMENDED: MMM-NIGERIA | HOW TO PROVIDE HELP
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 A corroboration of this paper’s position could be found
in a statement issued by the EFCC regarding the order given to it by the House
of Representatives. “We can only arrest people based on the evidence that we
have. 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.
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