AfricaPress-Tanzania: ZANZIBAR President Dr Hussein Mwinyi yesterday reaffirmed the government resolve to thoroughly investigate Masterlife Microfinance operations and recover all the money that the pyramid scheme has swindled wananchi.
“For now, there is nothing that the government can do besides investigating and instituting stern legal measures against the culprits… but, all the money must be returned to their owners,” President Mwinyi told reporters at a hurriedly convened press conference at Vugabased State House.
The pyramid scheme, which was registered under the Business Registration and Licensing Agency (BRELA) as a livestock keeping and animal feed manufacturer, using a certificate of compliance, crossed over to Zanzibar where it had been operating as a microfinance institution.
Dr Mwinyi said by March 4, 2021 when the revolutionary government intercepted its operations, Masterlife had collected 38.5bn/- from hapless 39,000 members.
“It’s surprising that the company, instead of fulfilling its obligations as per registration, got engaged in the business of taking deposits from people,” the president said, adding that investigations have so far indicated that Masterlife had no profitable business and it was instead revolving the money amongst members.
The illegal business has already created conflicts and anxiety in the country because wananchi had high expectations in the business. “…unfortunately, some people took huge loans from commercial banks to join the scheme,” said President Mwinyi.
Already, the government has confiscated 4.79bn/- from various investment avenues where the company owners had injected the money.
Luxurious vehicles, plots and buildings are as well under the government control pending investigations.
President Mwinyi warned Zanzibaris against participating in illegal businesses, though promising to continue with investigations to ensure justice prevails. “I urge you to remain patient as the government continues with investigations… the government intention is to ensure that the rights of wananchi who invested their money are well protected,” Dr Mwinyi said.
Fielding questions from journalists, President Mwinyi conceded laxity in the part of the regulatory bodies, saying: “Had the authorities taken the appropriate measures timely, we wouldn’t have reached this stage.”
The pyramid scheme, though it started its operations only last June, had become the talk of the town with seven offices—six in Unguja and one in Pemba.
