MMM a Ponzi scheme no doubts has gotten many Nigerians talking with many putting staggering sums into the it despite clear warnings from the Central Bank of Nigeria, House of Representatives and a threat from the Economic and Financial Crimes Commission (EFCC) to desist from it.
Recall МММ as a Russian company perpetrated one of the world’s largest Ponzi schemes of all time, in the 1990s.
By different estimates from 5 to 40 million people lost up to $10 billion. The exact figures are not known even to the founders. It is also vital to note that 50 investors in MMM committed suicide in 1994 after it crashed.
The police closed the offices of MMM for tax evasion on July 22, 1994. The company tried to continue the scheme but the business shut down.
In light of these, we take a look at reasons why despite the notoriety of the scheme across the world, the Nigerian government is almost powerless in shutting the scheme down.
1. Nobody has raised valid and Prosecutorial allegation against it
Another major reason is the fact that no one has complained yet of losing money or getting swindled by the scheme. Proponents of this theory believe this is probably why security agents are yet to swing into action.
Typically, criminal cases (which this would have fallen into assuming it’s established as a ponzi) are typically investigated after a complaint has been laid by the accuser.
If this holds true, then it will be a while before authorities even touch this scheme.
2. Top government officials are involved
There are rumors that policemen, top government and EFCC officials are also making huge amount of money from the scheme which makes them less concerned about curbing its activities in the country.
3. There are no laws in place against it for now
Legal analysts also opine that there is no clear law against MMM especially as no one has complained of losing money in the scheme. The Cyber Crime Act of 2015 also doesn’t specifically classify as illegal any website use to crowd source money from Nigerians.
The Security and Exchange Commission may also not have jurisdiction here as contributors to the scheme are not investing. In fact, they claim on the website that it is “not an investment program”. Without an enabling law or at least one that is close to it, MMM appears to be on a legal sound footing and can only be thwarted legally if someone complains of being swindled.
4. The Government may be involved in a huge battle with the masses since MMM is turning out to be a source of livelihood with the lack of jobs skyrocketing on a daily basis.
5.Supports from far and wide: Though many have variously referred to it as a ponzi scheme this has however, failed to dissuade a huge chunk of Nigerians from participating in it.
6. MMM has no face
There is no registered office or bank account attributed to MMM, making it hard to be targeted by the federal government.
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