The Bank of Namibia has warned the public against the Global Green Network (GGN) illegal financial scheme resurfacing after three years.
According to a statement issued by the central bank yesterday, GGN seems to have resurfaced after being flagged in 2020.
“Following the issuance of the media statement, the activities of Global Green Network subsided for a while, however, Global Green Network has now resurfaced and continues to operate illegally as Global Green Trading,” said central bank spokesperson Sandra Garises.
According to Garises, the reason why it was flagged is because it does not offer any products for sale and their marketing strategy places emphasis on the recruitment of new members which contravenes the Banking Act.
“The company features a referral system that encourages participants to continuously recruit new members to earn income.
As new members are recruited, existing members advance in the business hierarchy, earning higher commissions as their recruits (downline) bring in more people,” said Garises.
Section 55A of the Banking Institutions Act speaks to pyramid or ponzi schemes.
According to Garises, the structure of the business will likely result in the public losing money as has been seen with other ponzi schemes.
“The business structure is thus not sustainable and will likely result in the public losing their money,” said Garises.
She added that members of the public should not participate in this scam.
“Members of the public are hereby directed to cease participation in Global Green Network or Global Green Trading with immediate effect.”
The GGN Facebook page shows that members can join with N$100 and get paid N$10 for every person they recruit.
She urged members of the public to report any type of scams.
“The public, as such, is cautioned to be on the lookout for the type of scams described above, recognise the distinctive features, verify information and promptly report any suspicious activity to the Bank of Namibia,” said Garises.
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