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More facts have emerged on how the trending money spinning donations-facilitated business of MMM collapsed in other countries before coming to Nigeria.
MMM has collapsed severally first in Russia, South Africa and recently Zimbabwe. Research shows the Russian government in 1994 saw MMM as a threat and seized millions of participants monies in the MMM head office thereby leading to the collapse.
The Russian government excuse was “MMM didn’t pay taxes”. It is hard to trust a Russian government who jailed and killed Nicolai (a foremost economist) by a firing squad for simply predicting the fall of socialism. The founder of MMM was arrested for not paying taxes (which was impossible because there was no law in Russia to tax a joint stock company for selling stocks) and later released when he was voted into parliament in millions of Russians. Clearly, they didn’t see him as the person who stole their money, they knew what their government had done hence the overwhelming vote.
In the case of South Africa, banks and the media strongly believed MMM was a threat to their economy within the period it came. The media trial created a panic among participants who didn’t really understand the MMM ideology thereby leading to a panic. People stopped donating to each other.
However, here in Nigeria, MMM boasts of transparency by having no central account (so the money cannot be easily stolen) and being truthful with participants. MMM strongly warns participants to donate only spare money and stick to the ideology of helping each other. MMM resists those who want to get rich quick on its platform by putting limitations on possible donations (ten thousand dollars) and removing participants with multiple accounts.
According to their website and many Nigerian participants interviewed, a lot of people had benefited and are still benefiting from donations they provide to each other through the MMM platform. A participant, Ade, got donations of about N900,000 donations to pay for his medical bills after previously donating N500,000.
On the other hand, there are signals that the security forces are not implementing the arrest order by the National Assembly as many of the operatives are putting down their money and gaining monthly 30 per cent.
Many Nigerians who spoke to Business Hilights claimed that they have recovered all their money and that what they are investing now can be said to be what they gained.
But the key puzzle that is yet to be resolve remains how and when the bubble will burst.
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