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{
    "id": 1104951,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1104951/?format=api",
    "text_counter": 129,
    "type": "speech",
    "speaker_name": "Kirinyaga Central, JP",
    "speaker_title": "Hon. Munene Wambugu",
    "speaker": {
        "id": 13382,
        "legal_name": "John Munene Wambugu",
        "slug": "john-munene-wambugu"
    },
    "content": " Thank you, Hon. Speaker. Pursuant to the Standing Order No.44(2)(c), I rise to request for a Statement from the Chairperson of the Departmental Committee on Finance and National Planning regarding the upsurge of unregulated investment schemes and financial fraudsters in the country. There has been a recent upsurge of unregulated investment schemes, also known as Ponzi schemes, and financial fraudsters in the country. These fraudsters and schemes are defrauding many unsuspecting Kenyans of their hard-earned money. The organisers of the said schemes often promise rapid and high financial returns with little or no risk as well as a guaranteed return primarily targeting the elderly, retirees, job seekers, students and persons within the middle and lower income brackets. The companies and individuals running Ponzi schemes are exploiting the regulatory gaps and poor enforcement of administrative measures to con and manipulate people of their hard- earned money. Many of them are desperate, poor and highly vulnerable. The damage these schemes can inflict requires a determined regulatory response to shut them down at an early stage before they gain momentum. It is against this background that I seek a Statement from the Chairperson of the Departmental Committee on Finance and National Planning on the following: (i) How many regulated and unregulated schemes are in existence in the country, if any, and could the Chairperson provide a list of the said schemes and the actions that have been taken against them? (ii) What steps is the relevant Government agencies taking to ensure that all regulated and unregulated schemes are fully investigated, forensically audited and perpetrators prosecuted at the court of law and, further, money and funds that were illegally collected from victims are returned to their owners? (iii) Could the relevant ministry consider drafting and submitting rules and regulations to the National Assembly for adoption that are geared towards better and sound management of the schemes in the country? (iv) What plans, if any, are underway to organise sensitisation programmes on the ills of Ponzi schemes as well as financial literacy lessons to encourage the citizens on available Government’s empowerment programmes for unemployed persons and any other economically challenged groups for possible safer ways of investments so as to reduce the inclination to invest in such unregulated schemes? Thank you, Hon. Speaker."
}