Authorities suspend operations of pyramid scheme

HUYE – A pyramid scheme that had promised huge returns to its clients in Huye District has been closed.The National Bank of Rwanda, Huye branch, in collaboration with police on Thursday ordered the closure of the scheme known as “Amazing Growth Chain”, for operating illegally. The scheme was quickly spreading in the district in which it mainly targeted National University of Rwanda (NUR) students. In order to be part of this business, one was required to deposit Rwf36,000 to the account numbers of six different persons who formed the core of the pyramid. ECOBANK had served as the main bank where this operation was being transacted. The bank became suspicious after realizing that there were very long queues of students lining up to deposit money to the six accounts. Bank officials alerted the police who in turn ordered the closure of the scheme pending further investigations. Sources say that data collected by National Bank of Rwanda on Thursday revealed that there were some accounts which had already accumulated amounts above Rwf 3 million within a period of only two weeks. J.M.V Rurangwa, the manager of National Bank of Rwanda-Huye branch, said the accounts used in this scheme have temporarily been blocked until investigations and the full report on its mode of operations is carried out by the central bank as a regulator of the financial sector. The move received mixed reaction from the public. Fabrice Sibomana, a student at NUR had joined the scheme and was still waiting for his returns prior to the central bank move. However, after the clamp down by the central bank he says he is ready to count his losses. “I joined this scheme expecting interest earnings but I was also determined to bear risks in case it fails,” said Sibomana. Bosco Ntihemuka, another person who joined the scheme at its inception said he had earned some forms of benefits. “I earned a significant amount of interest from Amazing Growth Chain. But if the government decided to close it because it is operating illegally, I don’t complain,” he argued. The closure of this scheme comes months after government closed a similar pyramid scheme, Quest net. The proprietors of Amazing Growth Chain are yet to be known. Ends