Gov’t lifts ban on Quest Net

Government has lifted a ban on QuestNet following the company’s pledge to abide by the country’s laws, a statement has said.QuestNet operations were banned from operating in the country in August 2009 for contravening the companies and tax laws.“Upon review of your request to lift the ban on your business, and after consultations with different stakeholders, we hereby lift the ban and allow your company to resume operations as long as you abide with the conditions,” the Minister of Finance and Economic Planning, John Rwangombwa, said in a letter addressed to the company.But he gave them several conditions including; registering the company in Rwanda, obtaining a physical address, registering as a taxpayer, making monetary transfers in line with the country’s laws, declaring members of the QuestNet chain to tax authorities, and storing the items being sold in a warehouse in Rwanda.In response, Quest International thanked the government for the waiver, describing the development as a positive step for its business.“We are deeply grateful and obliged to the Government of Rwanda for the opportunity afforded to us to validate it. We hope to ensure all our incorporation and formalities in due course,” said Zaheer Merchant, Director, Group Legal and Corporate Affairs, said in the statement.The Hong Kong-based company, also known as QNET, intends to partner with the Government and help the people of Rwanda achieve their aspirations, it said.It said it intends to officially renter the Rwandan market come October. One of the causes for the ban was that the company argued it conducts its business operations through Independent Representatives (IRs) and its eCommerce based business model that does not need a physical office.Citing article 4 of the Companies Act, the Government insisted it was compulsory to register a company in the Registrar General’s office.The company had also described itself as a direct marketing entity that uses network marketing but the central bank, BNR, suspected QuestNet could be operating under a shadowy pyramid scheme, which raised concern of money laundering.Marchant said they plan to identify suitable projects which they can promote in the spirit of Corporate Social Responsibility (CSR) .“These projects will be kicked off through the QNET Pays Forward programme which is managed under the RYTHM (Raise Yourself To Help Mankind) philosophy, that is the mainstay of all that we do,” he said. Government has previously warned the public against pyramidal operations or get-rich-quick schemes in which people put their cash. Qnet specializes in marketing products such as food supplements, wellness and lifestyle products, where people are hired to move around door- to-door, looking for clients. The marketers are paid based on the number of clients they have managed to bring on board, And should the clients get more customers, the profit generated from the new client is shared among all those involved in bringing them on board.

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Gov’t lifts ban on Quest Net