Bank of Ghana says Capital Builders Network not licensed
The Bank of Ghana (BoG) has issued an alert saying that a financial firm called Capital Builders Network Ltd has not been licensed by the Bank to operate in the country.
According to the central bank, following a publication in the Daily Graphic of Monday, January 24, 2011, which reported the presence the company it conducted investigations into the company.
The Bank however says its investigations have shown that Capital Builders Network operations in the country have not been licensed by the central bank, which is the regulator of financial businesses.
“Preliminary investigations undertaken by the Bank of Ghana into the operations of the company indicate that it is involved in some form of deposit mobilization activity for which a licence has not been obtained from the Bank of Ghana”, it said in a statement issued on Wednesday January 26, 2011 copied to ghanabusinessnews.com.
“Indeed, the operations resemble a ‘pyramid’ or ‘ponzi’ scheme as the pay-off of earlier contributors depends on the continuation of a chain of subsequent joiners of the scheme”, the statement added.
The Bank of Ghana adds that it is conducting further investigations into the background of the directors and the activities of the company to safeguard the financial system. and cautioned the general public to be mindful of its dealings with the firm.
By Ekow Quandzie
I was a subscriber at the CBNET.
I cancled my deal with them as soon as i saw the breaking news. But yet they are running it. Please the innocent once at stil walking in and out all day. Pass the news arround ghana through media
No wonder Apostle Kwadwo Sarfo, with all his effort at “domestication” has had to endure insinuations and suffered a lack of Governmental support.
Onua Amoah died with all the brilliant ideas of producing bio-diesel, when we needed it most as a nation.
The time is now, as Ghanaians, to renew our mindset and not continue doing such things like crabs in a bucket!
Sensational reportage? Yes, but BoG officials who were sent to the office of CBNet, on the day of the irresponsible publication, called their Banking Supervision Department boss to inform him that there was nothing wrong with the mode of operation.
After all, they agree that the “Susu” operator, who doesn’t have an office and could run away with clients’ money, is also doing deposit mobilization. Meanwhile, the BoG had replied to CBNet’s earlier request for regulation that they do not regulate “Susu” operators so CBNet could join the Association of “Susu” operators.
Conditions for participation in the CBNet scheme are not shrouded in secrecy. They are clearly written on flyers that are given to prospective members who should be above 18 years of age. They are also taught extensively, on a daily basis, before they are allowed to register. Again, they are given 2 days to renounce their membership for 80% of their deposits.
The truth is like a cork; it can never be submerged. Surely, whoever is behind this attempted destruction of a noble effort that is bringing hope to many, who may not have access to this medium, will be found out…soon.
I believe they should be allowed to operate