BNR orders probe into Diamond Holiday business

The National Bank of Rwanda (BNR) has asked police to conduct investigations into the activities of Diamond Holiday Travel (DHT), a Hong Kong based company engaged in pyramid business in Rwanda. Reliable sources say the central bank has always doubted the credibility of the organisation’s activities ever since it was registered by Rwanda Development Board last September, with claims of unlimited opportunities to leverage income of Rwandans ‘at minimum effort’ Central bank governor John Rwangombwa confirmed the reports when contacted by The New Times, this week, saying the police is investigating DHT but said “I prefer not to make any comment until police investigations are over.” A police source privy to the investigation told The New Times, that it is too early to comment on the possible outcome. Speaking on condition of anonymity, the source said that a meeting is scheduled with the central bank officials, this week, about the matter. Celestin Buhuru, the DHT legal advisor also confirmed that their company is under investigation. “I have explained to the central bank that there is nothing wrong with our business. I know the police are investigating, but what’s wrong with a registered company making a deal with clients and meeting with them on application of terms and conditions?” Buhuru added: “At the beginning the company was misunderstood; we do not trade money, they trade services.” How it works The business works on membership pyramid scheme and requires depositing Rwf250,000 on the company’s account, then building teams of people so as to get bonuses from subsequent revenues by new members. One enters the Holiday Board upon registration. A software whose main server is managed from Hong Kong will enter new members on the bottom level and then gradually push them from bottom to the top of the board. “The faster the board is filled, the sooner they receive their bonuses,” reads a note on Diamond Holiday communication material, adding that the team has to work hard for everyone to have at least two people registered. When the holiday board fills up, after 14 members have joined, the note says, Level Four position member earns Rwf 500,000. This step drives the member to the second membership category, the Diamond Board where a member gets Rwf 5m. Then he/she re-enters to the bottom of the Diamond board to restart the same game. According to Buhuru, they have so far registered more than 2,000 members across the country, adding that the company has several other products, like giving a discount on hotels and air tickets to the registered members when they travel. He said that RwandAir, Kenya Airways and Sports View Hotel are some of the businesses which have signed a deal with them. Members speak out Some subscribers who talked to The New Times, said earnings from the company are not comparable to their previous work. Alphonse Rukundo, a young man in his early 20s, was a truck driver, who earned Rwf 200,000 a month until last March when he heard of DHT. He abandoned his job and embraced the new business upon depositing the registration fee (Rwf 250,000) which also serves as investment on Diamond Holiday account in Ecobank. He interested two colleagues, also drivers who deposited their contribution under his code. “After two weeks I had already got 14 recruits, which gave me the right to Rwf 500,000. Early April, I earned Rwf 5m for the first time in my life,” testifies Rukundo. Testimonies of people like Rukundo sound too good to be true which raises scepticism in the business. Some of the members decide to enter many boards at once, with some registering their family members. Chantal Umulisa, a Kigali based medical assistant, is registered 10 times along her three children and her husband. She said she has got Rwf5m in one board and she is soon reaping another Rwf15m in three other boards. The business also reportedly includes some prizes like cars and houses which are given according to the number of people under someone’s name. Umulisa said she is part of the 23 members who will today (May 16) head to Lagos, Nigeria to participate in a a prize-giving ceremony. “Several times I have tried and failed in business, Rwf250,000 is nothing; if I dont make any profits, it will not be the end of the world,” said Andrew Mutsindashyaka, a member who joined in March and has not recruited any person, since he “has got no time to do it”. However, according to another member who spoke on condition of anonymity the capability of the local staff to manage the system is questionable.