Controversial Russian Ponzi scheme MMM quietly sets up in Ghana after failing in other countries – Report

A 27-year old Russian Ponzi scheme called Marvodi Mondial Movement (MMM) that has caused distress in some African countries has set up in Ghana, a Quartz Africa report says.

The report indicates that the scheme which described itself as a “mutual aid fund” started operations in Ghana a week after suspending operations in Nigeria.

The scheme was quietly launched in the country last month and operates a similar model as elsewhere and it is starting to reach out to ordinary Ghanaians.

According to the report, the scheme works by registered participants pledging and donating money to other participants they get paired with. The donation is regarded as “providing help” (PH) and after a month, donors are promised reimbursements of the full amount donated plus a 30 per cent interest.

It further explains that in a reversal of the initial process, donors can “get help” (GH) after being paired with other participants who pay them their initial cash plus interest.

Leveraging on Ghana’s faltering economy, the scheme brands itself as a form of social wealth redistribution system.

The report indicates that a similar tact worked in Nigeria where MMM quickly became popular where participants including students who risked their tuition, sought for 30 per cent profit- much higher than what local banks offer. At the time of suspending operations, MMM had garnered more than 2.4 million Nigerian participants despite repeated warnings from government.

Before freezing its operation in Nigeria, MMM had employed a similar model in other African countries, like South Africa, Zimbabwe and Kenya.

By Pamela Ofori-Boateng