A militant group, the Niger Delta
Avengers (NDA), has claimed responsibility for the blowing up of
Chevron's Escravos Export Pipeline at Escravos Offshore. A statement by
the group, signed by Major General Mudoch Agbinigbo, said the pipeline
attack took place at about 3:45 am on Tuesday and was carried out by its
Strike Team 06.
The group similarly announced that the attack
was executed as a further warning to international oil companies that
there should be no repairs to damaged pipelines pending negotiations and
dialogue with the people of the Niger Delta.
"Any attempt to use
dialogue to distract us so as to allow the free flow of our oil will
halt the dialogue process," the group threatened.
Source:
http://saharareporters.com/2016/10/25/niger-delta-avengers-blow-chevrons-escravos-export-pipeline
With the current high rate of
unemployment, job losses and pressing financial needs in the country, it
is not surprising that the youth are embracing questionable get rich
quick schemes and opportunities.
For instance, the number of
Nigerians that now patronise the popular lottery games is on the
increase. Some youths are also deeply involved in sport betting through
such platforms as Nairabet, Merrybet and Bet9ja, among others.
It
is against this backdrop that the MMM Federal Republic of Nigeria made a
grand entrance into the Nigerian investment market in 2016. MMM stands
for Mavrodi Mondial Moneybox and takes its name from its founders,
Sergei Panteleevich Mavrodi, Vyacheslav Mavrodi, and Olga Melnikova.
The
outfit was established in 1989 by these three Russian nationals, and
promises its clients 30 per cent return on investment (ROI) for money
put into the system for 30 days. The scheme prides itself as a mutual
aid fund through which recruited members contribute money to assist
others. The founders claimed they are not into banking, online business,
investment company or a multi level marketing (MLM) programme. The
scheme structure, however, indicates otherwise.
For instance, members
can have multi-level structures under them and receive bonus from each
donation of every participant in their structures.
The company
has been able to persuade many Nigerians to buy into its idea. Many
Nigerian big online Business coaches and entrepreneurs with vast
subscriber base are encouraging their followers to key in to the MMM
opportunity. Thus, some Nigerians have invested millions of Naira into
this scheme and are enjoying their newfound wealth.
This reporter
has seen screenshots of money many claimed to have earned from the
scheme. According to one such subscriber, Babajide Abayomi, MMM ensures a
level playing ground for all. And with it, people don’t have to be
under the yoke of the banking system, which demands that huge interest
be paid on loans. He said MMM is real and safe.
However, the
question some have asked is: How long would it take to sustain the
profits? Many still remember vividly the mad days of the Wonder banks in
the early 2000s. Then, many lost their hard-earned money to the likes
of Pennywise and such other scammers.
To really grasp the risk
involved in investing in this type of scheme, a study of the founders’
backgrounds provides good insights into the viability of their outfit.
According
to Wikileak, the online information library, МММ was a Russian company
that perpetrated one of the world’s largest Ponzi schemes in the 1990s.
By different estimates, between five and 40 million people lost up to
$10b. The website said the exact figures of money lost are not known,
even to the founders. The site described Sergie Mavrodi as a Russian
criminal and a former deputy of the State Duma in Russia. According to
it, he is the founder of the МММ series of pyramid schemes. Wikileak
reported that in 2007, Mavrodi was found guilty in a Russian court of
defrauding 10,000 investors out of 110m rubles ($4.3m).
Wikileak
reported: “In January 2011, Mavrodi launched another pyramid scheme
called MMM-2011, asking investors to buy so-called Mavro currency units.
He frankly described it as a pyramid, adding, “It is a Unclad scheme,
nothing more … People interact with each other and give each other
money. For no reason!” Mavrodi said his goal for launching MMM-2011 is
to destroy the current financial system, which he considers unfair, and
form something new to take its place.
“In 2011 he launched a
similar scheme in India, called MMM India, again stating clearly that
the vehicle is a pyramid. He has also launched MMM in China. He was
reported to be trying to expand his operations into Western Europe,
Canada, and Latin America.
“In 2015, MMM began operating in South
Africa with the same business model as MMM-2011, claiming a “30 percent
per month” returns through a “social financial network.”
“The
group was identified as a possible pyramid scheme by the National
Consumer Commission and accounts of clients were later frozen by Capitec
Bank.”
In January 2016, the Chinese government banned MMM on the
ground that it is a pyramid scheme, (Ponzi scheme), and not registered
in the country. Earlier this year, the scheme crashed in South Africa.
MMM Global only gave South Africans the bad news with a post on its
website saying: “We regret to inform you that we have to close down the
Republic of Bitcoin. It was an experiment, and, unfortunately, it
failed. We turned out not to be able to pay 100 percent per month.” Also
recently, the scheme collapsed in Zimbabwe.
One of the
victims, Mrs. Rosemary Mawonde was quoted by Breaking Times, saying: “We
never thought the scheme would end this way, as we believed that by
using EcoCash to do the transactions, things were in order. I am
surprised that EcoCash is also distancing itself from the scheme and it
is clear that I will never recover the $300 that I invested.”
What
then is a Ponzi scheme? The scheme (also a Ponzi game or a Ponzi) is an
investment operation, where the operator, an individual or organisation
pays returns to its investors from new capital paid to the operators by
new investors, rather than from profit earned through legitimate
investments. Operators of Ponzi schemes usually entice new investors by
offering higher returns than other investments, in the form of
short-term returns that are either abnormally high or unusually
consistent.
Initially, the promoter would pay out high returns to
attract more investors, and to lure current investors into putting in
additional money. Other investors would begin to participate, leading to
a cascade effect. The “return” to the initial investors is paid out of
the investments of new entrants, and not out of profits.
Often,
the high returns encourage investors to leave their money in the scheme,
with the result that the promoter does not have to pay out very much to
investors; he simply has to send them statements showing how much they
have earned. This maintains a semblance that the scheme is an investment
with high returns.
The Securities and Exchange Commission has
warned the public about the activities of the scheme on August 30 of
this year. According to its website, SEC said: “The attention of the
Securities and Exchange Commission, Nigeria (SEC) has been drawn to the
activities of an online investment scheme, tagged ‘MMM Federal Republic
of Nigeria (nigeria.). The platform has embarked on an aggressive online
media campaign to lure the investing public to participate in what it
called “mutual aid financial network” with a monthly investment return
of 30 percent.
“The Commission hereby notifies the investing
public that the operation of this investment scheme has no tangible
business model, hence it’s a Ponzi Scheme, where returns are paid from
other people’s invested sum. Also, the Commission does not register its
operation.
“The general public is hereby advised to distance
itself from this online scheme. Please note that anyone that subscribe
to this illegal activity does so at his/her own risk.”
Managing
Partner, Two-Edge Partners Global Limited, Olajide Alex-Oni said such
scheme is usually targeted at the extremely poor, greedy and desperate
people of the society.
He said: “The get rich quick scheme
usually comes out looking so attractive to the populace, but like what
is, it is robbing Peter to pay Paul!
“When a company encourages
existing investors to invite other potential investors by rewarding them
with money from these new comers, then what do you call that? Such a
model is not sustainable and is a highly risky investment, because once
the flow of investors and their funds stop flowing into the scheme, the
investors will most definitely suffer unimaginable losses.”
Speaking
on MMM operations, he said a number of countries around the world have
banned this scheme and Nigeria should equally do the same. He said since
SEC has warned Nigerians on the activity of this group, it is,
therefore, illegal to invest in them, because their model is a typical
pyramid scheme. He explained that the scheme was not licensed to operate
in Nigeria, noting that its operations are online based, which can
crash or get closed down unannounced. He said it’s designed to attract
huge traffic and promises unconventional high returns on investment.
Speaking
further, Alex-Oni warned: “People have to be careful of such schemes,
because they claim to be foreign investor driven with amazing success
stories, thus the attraction for the ignorant. The ignorant in this case
are usually aware of the risk involved, but the greed in them let them
take such risk with the hope to exit before the scheme crashes.
“It
is also quite sad that in some extreme cases, some investors actually
commit their entire life savings into these kinds of ponzi schemes.
People should learn to get creative and innovative through hard work and
smart thinking and start creating values and ideas that money will
chase. That way, you may start small, but you will think big to grow big
the proper way. A warning is enough for the wise.”
Source
