CBNet throws light on its operations, Tuesday, February 1, 2011, Spread
The management of Capital Builders’ Network (CBNet) Ltd, a non-bank financial institution, has stated that contrary to media reports, it has not breached any of Ghana’s financial regulations in its operations.
“We maintain that we have done all the right things in the setting up and operations of our Susu Nnoboa,” the Chief Executive Officer (CEO) of the company, Mr Yaw Diowuso-Agyeman, said at a press conference in Accra yesterday.
He, therefore, appealed to regulators of the banking sector, especially the Bank of Ghana (BoG), to be just and fair to the company in their quest to streamline operations in the sector.
Mr Diowuso-Agyeman said the company was devastated by reports that even before concluding its investigations into allegations of impropriety against the company, the BoG had “put out a damning notice about CBNet, cautioning banks, non-financial institutions and the general public about their dealings with the company”.
He said ever since the Daily Graphic publication of Monday, January 24, 2010 which was headlined, “Pyram Again?”, the company had been under siege from the BoG and the Economic and Organised Crime Office (EOCO).
He said immediately after the said story, “the Banking Supervisory Department (BSD) descended on us to demand copies of all documentation under which we operate as a legal entity”, adding that although the Central Bank took “a fine-tooth comb” through the company’s operations and documents and found no fault, it still went ahead to describe the operations of the company as a “mystery”.
He added that although companies, by law, had up to May this year to prepare and submit their audited accounts for the previous year, the company was asked to submit its draft audited accounts in three days.
Giving an insight into the operations of the company, Mr Diowuso-Agyeman said CBNet was essentially a modern ‘susu’ operator that combined referral marketing and Information and Communications Technology (ICT) in capital mobilisation for its participants.
“It is controlled by a software that strings together one’s down lines in a value chain of multiples of twos in eight weeks when a cycle ends. A participant’s cash portfolio grows as his down lines grow within the specified period of eight weeks,” he explained.
He said the company held several daily presentations at its offices at which prospective clients were taught “how to save, where and how to find the money for the savings”, adding that it was working for thousands who gave testimonies daily about the relief the concept had brought to their finances.
It is recalled that the Daily Graphic of Monday, January 24, 2010 reported the presence of a financial institution in the country whose activities were akin to those of the defunct and infamous Pyram and Resource 5000 (R5) financial firms.
The institution, according to the report, operated by asking customers to register with an amount of GH¢25 or GH¢5O, after which they were provided with two coupons to be given to other potential customers who would also register as down lines within seven days.
The two down lines would then be given two coupons for more potential customers in a similar manner. Where the cycle is sustained within eight weeks, the first customer of the cycle who registered with GH¢25 is expected to be paid GH¢1,275, while GH¢2,55O is paid to those who start with GH¢5O.
Daily Graphic checks have revealed that failure by those down lines to sustain the cycle in seven days after registering meant a forfeiture of the initial deposit and the expected benefits.
Additionally, any member of the cycle who defaulted in obtaining the two down lines, leading to a break in the cycle, lost the registration fees.
Meanwhile, customers who decide to withdraw must return, within 48 hours, the two coupons that were given them to obtain the two down lines for a refund of 80 per cent of the registration fee.
“We maintain that we have done all the right things in the setting up and operations of our Susu Nnoboa,” the Chief Executive Officer (CEO) of the company, Mr Yaw Diowuso-Agyeman, said at a press conference in Accra yesterday.
He, therefore, appealed to regulators of the banking sector, especially the Bank of Ghana (BoG), to be just and fair to the company in their quest to streamline operations in the sector.
Mr Diowuso-Agyeman said the company was devastated by reports that even before concluding its investigations into allegations of impropriety against the company, the BoG had “put out a damning notice about CBNet, cautioning banks, non-financial institutions and the general public about their dealings with the company”.
He said ever since the Daily Graphic publication of Monday, January 24, 2010 which was headlined, “Pyram Again?”, the company had been under siege from the BoG and the Economic and Organised Crime Office (EOCO).
He said immediately after the said story, “the Banking Supervisory Department (BSD) descended on us to demand copies of all documentation under which we operate as a legal entity”, adding that although the Central Bank took “a fine-tooth comb” through the company’s operations and documents and found no fault, it still went ahead to describe the operations of the company as a “mystery”.
He added that although companies, by law, had up to May this year to prepare and submit their audited accounts for the previous year, the company was asked to submit its draft audited accounts in three days.
Giving an insight into the operations of the company, Mr Diowuso-Agyeman said CBNet was essentially a modern ‘susu’ operator that combined referral marketing and Information and Communications Technology (ICT) in capital mobilisation for its participants.
“It is controlled by a software that strings together one’s down lines in a value chain of multiples of twos in eight weeks when a cycle ends. A participant’s cash portfolio grows as his down lines grow within the specified period of eight weeks,” he explained.
He said the company held several daily presentations at its offices at which prospective clients were taught “how to save, where and how to find the money for the savings”, adding that it was working for thousands who gave testimonies daily about the relief the concept had brought to their finances.
It is recalled that the Daily Graphic of Monday, January 24, 2010 reported the presence of a financial institution in the country whose activities were akin to those of the defunct and infamous Pyram and Resource 5000 (R5) financial firms.
The institution, according to the report, operated by asking customers to register with an amount of GH¢25 or GH¢5O, after which they were provided with two coupons to be given to other potential customers who would also register as down lines within seven days.
The two down lines would then be given two coupons for more potential customers in a similar manner. Where the cycle is sustained within eight weeks, the first customer of the cycle who registered with GH¢25 is expected to be paid GH¢1,275, while GH¢2,55O is paid to those who start with GH¢5O.
Daily Graphic checks have revealed that failure by those down lines to sustain the cycle in seven days after registering meant a forfeiture of the initial deposit and the expected benefits.
Additionally, any member of the cycle who defaulted in obtaining the two down lines, leading to a break in the cycle, lost the registration fees.
Meanwhile, customers who decide to withdraw must return, within 48 hours, the two coupons that were given them to obtain the two down lines for a refund of 80 per cent of the registration fee.
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