 |
| The IMF estimates nearly 150,000 people were defrauded of more than 150 billion CFA francs (US$261 million) in the biggest financial scandal in Benin's history |
Sadiatou used to be a
well-off trader of traditional cloth at the market in Benin's economic hub of
Cotonou but now sells school equipment from the doorstep of her home.
AFP
report continues:
In
2010 she sank more than five million CFA francs (US$8,700, €7,600) into an
investment scheme that promised a quick profit.
"It's
a deposit I should never have made," she told AFP. "My business took
a hit and my health as well. I've been depressed for a long time.
"I
was counting on the savings I'd make to expand my business. But it was useless.
All my money has gone."
Seven
years after what was described as the biggest financial scandal in Benin's
history was revealed, 20 people this week went on trial.
Sadiatou
is one of nearly 150,000 people that the International Monetary Fund estimates
were defrauded of more than 150 billion CFA francs in the Investment
Consultancy and Computing Services (ICC Services) case.
Some
estimates, however, say as many as 300,000 people were lured into parting with
their hard-earned or borrowed cash and life-savings on the promise of 150 to
200 percent per quarter returns.
- Ponzi scheme -
Despite
repeated warnings about investing in so-called pyramid or Ponzi schemes, such
scams are becoming commonplace throughout Africa.
Frank
Engelsman, who heads the Amsterdam- and Paris-based Ultrascan, which specializes
in detecting international financial fraud, says such schemes are booming.
"First,
because the infrastructure in big cities of Africa is improving rapidly, both
phone as well as internet infrastructure -- and that's what these fraudsters
need... .
"Second,
because in those cities... police are not trained to handle internet
international communication crimes that always cross a border between the
fraudster and the victim."
In
Gabon, a business run by a Pentecostal church pastor, Yves David Mapakou,
allegedly swindled up to 30,000 French and Gabonese clients by promising
profits on investments.
A
complaint was lodged in Paris in August last year.
Africa's
most populous nation Nigeria remains the undisputed champion of fraud, having
assiduously developed "419" scams over the years -- a reference to
the relevant section of the criminal code.
Victims
from around the world have been duped into handing over billions of dollars
through a barrage of unsolicited email appeals and job offers as well as
promises of marriage.
Engelsman
said this type of fraud has "spread from Nigeria to neighbouring
countries" in West Africa, taking advantage of the lack of capacity of law
enforcement agencies to investigate.
"Like
most bad things like crime, they tend to spread when not put to a halt, widen
their scope to improve effect/income." he added.
Development
can even play a part.
"It's
easier when the infrastructure is good, in countries where also the chamber of
commerce is registering companies easily and bank accounts are opened, based on
one or more registrations," he added.
The
Ponzi scheme in Benin -- likened to the one run by Bernie Madoff in the United
States that saw the financier jailed -- involved paying initial investors with
the money of new clients.
Textile
worker Aline Aklassato said she had "no reason at all not to believe"
the scheme would not work.
"Colleagues
and friends had made deposits and received dividends," she added.
"I
got dividends myself for two months of 300,000 CFA francs before the
difficulties started."
- Criminal liability -
As
the case wound its way to trial, few of the alleged victims were able to attend
court hearings.
The
current trial will only look at establishing criminal liability. But for salesman
Leandros Koudenoukpo, "the key question is reimbursement".
Benin's
government in 2010 launched a compensation scheme for victims through the sale
of assets seized from ICC Services. But only a few benefited.
The 20 defendants in the
dock are facing charges of conspiracy, defrauding the public and practicing
illegal banking and micro-finance.
No comments:
Post a Comment