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MMM SA seeks court clarity over Ponzi claims

Cape Town – People representing South Africa’s MMM community said on Friday they applied to the Pretoria High Court on Thursday to get clarity on whether its donation-based network of users is a Ponzi and or pyramid scheme.

The high court could not confirm the case on Friday, as it said its system has crashed.

The members said in a statement that it is “absolutely confident that the court will declare that the MMM community is not a multiplication or pyramid scheme as defined by the Consumer Protection Act”.

MMM is currently part of an investigation by the electronic crime unit of the cybercrime and digital forensic laboratory within the Directorate for Priority Crime Investigation (Hawks).

This investigation follows a National Consumer Commission (NCC) investigation of MMM and eight other schemes in 2015, as requested by the SA Reserve Bank. The NCC handed over its findings to the Hawks.

MMM members, who have sent Fin24 hundreds of emails in support of the system, are adamant that their donation-sharing scheme, which offers between 30% and 40% returns via the mavros cyber cryptocurrency, is legal.

Many members say that within a year of its existence, MMM has helped them break out from indebtedness and poverty to have money for new cars, homes and private education. Furthermore, members claim they have given money to charities as part of their ideology of giving money to those in need.

They say people who criticise the system are either jealous or belong to the “corrupt” established banking and insurance system.

High levels of unemployment, indebtedness and lack of work opportunities have pushed many South Africans to the brink of survival.

MMM members believe they have found the solution to their problems and now want the courts to prove their way of life is legal.

“It is the hope of the MMM-RSA community that both the media as well as the NCC will allow the court process to run its course so that, in the interest of justice, the court may provide clarity in this matter,” the members said on Friday.

“A considerable part of the South African population are members of the MMM community. These South African families receive financial assistance through the MMM platform.”

On Thursday, MMM South Africa told its Facebook community that they need to keep donating to other members. "The most important finances (sic) rule is that only the movement of capital makes a profit," it said.

"In order to increase the amount of capital without resorting to loans, you just need to increase the rate of its turnover. You must learn to sell. It's better than paying interests."

City Press Consumer journalist Maya Fisher-French questioned how the MMM members can seriously believe their system is not a pyramid scheme. “Where do you think 30% comes from,” she asked.

“It’s going to be coming from other people. You have lent people money and they are going to pay you back with a 30% interest rate. How do you feel about that if you’re anti-capitalism, anti-banks? You’re actually making more money than probably the worst micro-lender out there.”

WATCH: Why Fisher-French is concerned about MMM

WATCH: Fisher-French says money is not created out of nothing; someone has to pay


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