approves anti-pyramid law
Cabinet has approved the draft anti-pyramid legislation designed
to combat quick money making schemes which have duped hundreds of
people, Dr. P. B. Jayasundera, Secretary to the Treasury said. It
will now be presented in parliament soon.
government decided to fast-track the legislation to put a stop to
the easy money making schemes which were spreading rapidly in the
of Exchange H. A. G. Hettiarachchi said that he has appointed a
special task force to carry out further investigations on the replies
to the show cause letters he had sent to the credit card holders
who had violated exchange control regulations in the GoldQuest referral
readers have drawn attention to a discrepancy in a GoldQuest advertisement
published in some newspapers last week in which it reproduced a
letter from the Royal Monetary Authority of Bhutan issued in February
2003 granting the company exclusive rights to mint and sell gold
numismatic legal tender coins.
claimed in the ad that the letter was "evidence that GoldQuest
International has a legitimate business relationship with the Royal
Monetary Authority of Bhutan."
the letter from the Royal Monetary Authority, Bhutan's Central Bank,
itself said the rights had been granted only until July 25, 2003.
GoldQuest officials were not available for comment Bhutan's Central
Bank banned GoldQuest earlier this year after labelling it a pyramid
scheme where gains are made by some from the wealth lost by others,
The Sunday Times FT reported on July 18. The Royal Monetary Authority
of Bhutan said in a statement that it had become aware of a financial
scheme using commemorative coins from GoldQuest International as
the primary product being marketed in Bhutan.
studying this scheme, RMA found that this is a pyramid scheme,"
the statement said. "Such schemes do not generate any productivity
but gains are made by someone from the wealth lost by another. The
scheme depends on bringing in an exponentially growing number of
new members and is likely to collapse after a certain stage, resulting
in heavy losses to a vast majority of its members."
response from GoldQuest
The Sunday Times FT request to interview the GoldQuest management
went unheard on two occasions. The first request was made via e-
mail on July 13 through the company's local PR agency, Rowland PR,
and the second was on July 28.