Longrich illegal, says BoN

12 April 2019 | Business


The Bank of Namibia has declared the activities of Longrich, a Chinese company that distributes a variety of household cleaning products and personal care products, as an illegal financial scheme.
The central bank announced today that it has investigated the business model and activities of Longrich in Namibia.
People can join Longrich by paying a specified amount into a local business account that starts at a minimum of N$1 000. Members are then encouraged to recruit other people to join Longrich and are paid a weekly “signing fee” for signing up new members.
Members are also promised free trips, car, cellphone and house allowances as well as study opportunities for up to four of their children in China.
Members are further encouraged to buy and sell Longrich products.
“Typically, illegal financial schemes put in place an elaborate recruitment drive where a person is offered a chance to join a group, programme, team or scheme in which he/she needs to recruit new members to make money and not necessarily through the sales of products to consumers,” the bank said in a statement.
“Considering the assessment made into the affairs of the scheme, the bank hereby declares Longrich as an illegal financial scheme exhibiting undesirable practices in terms of the Act…”
The central bank has further advised members of the public not to engage in business activities of Longrich. “Should Longrich and its promoters wish to continue with the sale of Longrich products, then such products should be sold directly to customers. Products for sale should also be the primary source of income, which means the commission should be paid based on the products sold and the business practice should be sustainable without the recruitment of new promoters in the manner described herein.”

STAFF REPORTER

Similar News

 

Erastus gets CEO nod

2 days ago - 13 December 2019 | Business

Licky Erastus has been appointment as the new CEO of Mobile Telecommunications Limited (MTC). Erastus had served as the company's acting CEO since June...

Alweendo supports Namdeb's tax break

3 days ago - 12 December 2019 | Business

Mines minister Tom Alweendo says he supports a proposed tax break for Namdeb, as anything that would help save the company from closure after 2023...

Seventh heaven for Chinese miner

4 days ago - 11 December 2019 | Business

The veil has been lifted on how a Chinese company has been mining copper in Namibia for over a decade while failing to pay over...

Existing fishing rights extended

4 days ago - 11 December 2019 | Business

Existing fishing rights holders have been granted permission by cabinet to net a third of the total allowable catch (TAC) for various species until the...

Meatco gets bulk of Norwegian quota

1 week ago - 05 December 2019 | Business

The Meat Board of Namibia has allocated next year's 1 600-tonne Norwegian beef export quota to Meatco and the Brukkaros abattoir. Meatco received a 1...

Synthetic diamonds pose a threat

1 week ago - 05 December 2019 | Business

Namdeb managing director Riaan Burger says although synthetic diamonds are a threat to his company; it is not something he is losing sleep over.He made...

PwC Namibia Walvis Bay office offers more than just...

1 week ago - 04 December 2019 | Business

Ansie Rossouw - As we approach the end of a very busy year, it is customary to reflect on the year gone by, as well...

Focus on people as well as profit

1 week ago - 04 December 2019 | Business

Zoe Tabary - Consumers have the power to make companies behave better and look beyond the bottom line, business leaders and activists said on Wednesday,...

Saudi Arabia’s Aramco casts IPO net

1 week ago - 04 December 2019 | Business

Anuj Chopra - From taboo-busting religious support to easy credit and fervent jingoism, Saudi Arabia pulled out all the stops to prop up Aramco's IPO...

Key zones saved from mining

1 week ago - 02 December 2019 | Business

With about 75% of mining revenue generated in protected areas, a policy has been developed that identifies nine areas in the country where prospecting and...

Latest News

Rundu chaos engulfs Swapo again

2 days ago - 13 December 2019 | Politics

The same chaos that engulfed the Rundu town council office-bearers election late last year, which dragged on to earlier this year, is once again playing...

Intercape confirms terrifying bus robbery

2 days ago - 13 December 2019 | Crime

While confirming a terrifying incident in which Intercape passengers were robbed at gunpoint on their way to Harare, the bus company did not answer questions...

Action, not promises

2 days ago - 13 December 2019 | Opinion

Acting fisheries minister Albert Kawana's utterances on Wednesday in Walvis Bay, where he addressed the fishing industry, must have come as music to the ears...

Erastus gets CEO nod

2 days ago - 13 December 2019 | Business

Licky Erastus has been appointment as the new CEO of Mobile Telecommunications Limited (MTC). Erastus had served as the company's acting CEO since June...

Dam levels still critical

2 days ago - 13 December 2019 | Disasters

While several dams have received inflows following good rains over the majority of the country, forecasts indicate that most parts of Namibia can expect only...

N$100k fine for ivory possession

2 days ago - 13 December 2019 | Crime

A man has been sentenced to a fine of N$100 00 or four years in prison for illegal possession of four elephant tusks. Bangorogile Motsokwe...

Students accuse Schlettwein of 'sabotage'

2 days ago - 13 December 2019 | Education

The Students' Union of Namibia (SUN) has accused finance minister Calle Schlettwein of sabotage, saying he is yet to release monies to pay their tuition...

Hundreds of thousands food insecure

2 days ago - 13 December 2019 | Disasters

ELLANIE SMIT Namibia’s agricultural sector has been contracting for the past five years and rural households and small-scale farmers have been severely affected, with 700...

Rundu welcomes ACC probe

2 days ago - 13 December 2019 | Disasters

KENYA KAMBOWE Rundu mayor Isak Kandingu has responded to a letter circulating on social media which alleges that the Rundu town council illegally swapped land...

Load More