LongRich model under investigation
The Bank of Namibia is assessing the activities of LongRich to establish whether it is legitimate or a pyramid scheme, BoN spokesman Kazembire Zemburuka has said.
LongRich is a Chinese company that distributes a variety of household cleaning products, personal care products and pet care products.
“The bank has conducted a preliminary assessment on the business model of LongRich and once that process has been finalised, the bank will communicate its findings to the public,” said Zemburuka.
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.
When trying to gather additional information, Namibian Sun found that LongRich does not have a single official website and operates in a way similar to Amway and Herbalife, where existing members are urged to recruit new members for monetary incentives.
Existing members are expected to buy LongRich products themselves and sell to other LongRich members or the public.
Botswana-based publication Mmegi reported in 2016 that LongRich had swindled many Botswana nationals.
According to the publication, amounts ranging from a thousand to a million pula had been deposited into the now defunct scheme, while members were not deriving any benefits from their involvement in the scheme.
OGONE TLHAGE
LongRich is a Chinese company that distributes a variety of household cleaning products, personal care products and pet care products.
“The bank has conducted a preliminary assessment on the business model of LongRich and once that process has been finalised, the bank will communicate its findings to the public,” said Zemburuka.
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.
When trying to gather additional information, Namibian Sun found that LongRich does not have a single official website and operates in a way similar to Amway and Herbalife, where existing members are urged to recruit new members for monetary incentives.
Existing members are expected to buy LongRich products themselves and sell to other LongRich members or the public.
Botswana-based publication Mmegi reported in 2016 that LongRich had swindled many Botswana nationals.
According to the publication, amounts ranging from a thousand to a million pula had been deposited into the now defunct scheme, while members were not deriving any benefits from their involvement in the scheme.
OGONE TLHAGE
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