BoN: ‘Don’t participate in Mufhiwa’

Jo-Maré Duddy – The Bank of Namibia (BoN) has cautioned the public not to participate in Mufhiwa Building Projects as doing so contravenes the Banking Institutions Act.
In a statement released by the BoN today, the central bank directed the promoters and participants of Mufhiwa “to stop”.
The deputy director of the BoN’s corporate communications, Kazembire Zemburuka, said the central bank conducted an investigation into the activities of Mufhiwa.
“The assessment revealed that the business activities of Mufhiwa Building Projects constitute and resembles the characteristics of a pyramid scheme,” Zemburuka said.
Members and participants in Mufhiwa Building Projects are encouraged to recruit new members, upon a payment of a joining fee of N$200, with the promise that such members receive payments to have their home loans settled, or to purchase new houses, or to renovate their existing houses.
It does not generate income through the sale of a product or any service to its members.
The joining fee of N$200 is used to pay existing members and the directors or owners of the scheme.
“Therefore, as soon as the recruitment of new members stops all the members and participants in the scheme will not receive any payment and will lose their joining fee,” Zemburuka said.
LOOKING FOR DIRECTORS
The BoN has been trying to get hold of directors or duly authorised representatives of Mufhiwa Building Projects, but to no avail, he said.
The BoN called on any director or duly authorised representative of Mufhiwa to contact the central bank within a period of 14 days from today to disprove the findings of its assessment.
“Any director or duly authorised representative of Mufhiwa Building Projects shall be afforded an opportunity to make written and/or oral representations to the Bank in order for the Bank to consider the matter in terms of the provisions of the Act,” Zemburuka said.
The BoN’s position shall be endorsed to be final if they fail to do so, he said.