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The
Central Bank of Lesotho has become aware of a
network/scheme known as TVI Express that is
operating in Lesotho in violation of the law. The
activities of this scheme resemble those of a
selling and marketing pyramid schemes as defined in
Section 2 of the Financial Institutions Act, 1999,
in terms of receiving funds from the public.
The
Central Bank of Lesotho would like to warn the
public about the dangers of investing or
participating in this particular scheme and other
schemes of a similar nature. Furthermore, the
Central Bank of Lesotho would also like to caution
all promoters of TVI Express, including persons who
attempt to recruit others, either by word-of-mouth
or via spamming email messages to join these
schemes, anywhere in Lesotho, to stop such practices
immediately.
After
the Central Bank of Lesotho scrutinized the business
model of this scheme against the relevant provisions
of the Act, the Central Bank of Lesotho concluded
that:
- Its
business operations place substantial emphasis on
recruitment of participants to it. In this respect,
the scheme offers lucrative incentives to the
participants, calculated primarily on the basis of
the number of participants or members that have been
recruited into it. It is evident that these
recruitment-based incentives serve as a bait to
attract potential participants into joining the
scheme, with the prospect of making easy money by
recruiting others.
- In
the whole, selling of purported products or services
is a small component of the business model in the
scheme and therefore designed to defraud members of
the public.
Given
the above, this business model contravene the
provisions of the Act when subjected to the
definition of “receiving funds from the public” and
therefore considered illegal. The Central Bank of
Lesotho therefore appeals to each and every
law-abiding citizen of Lesotho to refrain from
participating in any activities of TVI Express.
Further, the public is required to report such
activities to the Central Bank of Lesotho, through
the following offices:
Financial Institutions Supervision Division
Contact: Ms. Nomonde Sixishe at 22232026
Public Relations Division
Contact: Mr. Thato Mohasoa at 22232139 |
