• September 23rd, 2020
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BoN bans quick-buck WhatsApp Stokvel

The Bank of Namibia has strongly advised the public to avoid investing in pyramid schemes such as the R200 WhatsApp Stokvel, saying anyone who participates in the scheme is liable for criminal sanctions. “Members of the public are hereby directed to stop participating in the business activities of R200 WhatsApp Stokvel with immediate effect. Those who choose to continue to participate would be liable to a fine not exceeding N$1 000 000 or imprisonment for a period not exceeding 10 years or to both such fine and such imprisonment, if found guilty,” the central bank said this week after an investigation found that the WhatsApp Stokvel activities pointed to that of a pyramid scheme.  “The outcome of the investigation carried out has revealed that the business activities of the R200 WhatsApp Stokvel constitute a pyramid scheme.” The WhatsApp Stokvel requires promoters to recruit members of the public in order to make an income of N$1 200. The N$200 joining fee is used to remunerate participants at the top of the scheme. Thus, as soon as the recruitment of new participants stops, participants at the bottom of the scheme will not receive the promised income of N$1 200.  This, according to the central bank, contravenes section 55A of the Banking Institution Act, 1998 (Act No.2 of 1998), as amended. The bank further urged members of the public to be cautious when it comes to business activities that are of a suspicious nature. 

Illegal… BoN strategic communication director Emma Haiyambo. 

Staff Reporter
2020-05-22 11:03:20 4 months ago

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