Bayelsa Forex schemes: Govt disowns Cooperatives Bureau, assures on regulation

Nathan Tamarapreye, Yenagoa

The Bayelsa State government says it remains committed to the regulation of cooperative societies and the safety of investors’ funds.

The Commissioner for Trade, Industry and Investment, Mr Otokitio Oparminola, in a statement dissociated the state government from an earlier directive to the Bureau for Cooperative Development to cooperative societies involved in foreign exchange.

It would be recalled that Director, Bayelsa Bureau of Cooperative Development, Mr Fredrick Sese, had on May 19 directed cooperative societies engaged in foreign exchange trading with investors funds to reduce their rate of returns which range from 20 and 35 percent to 15 per cent to ensure sustainability of such schemes.

The disparity of positions between the Bureau and supervising Ministry is coming against the backdrop of the dominant cooperative in the state Baraza failing to meet its returns payment obligations and trapping of funds running into billions for its over 40,000 investors.

Baraza had since March halted the monthly payment of 25 per cent returns to subscribers to the scheme and announced a three-month suspension of payment of returns to allow it recover from the crash.

The Economic and Financial Crimes Commission had in April cautioned members of the public to be wary of investment schemes that offer mouth-watering returns for the safety of their hard-earned money.

Meanwhile Dr Miebi Briebina, Chief Executive of Baraza Multi-Purpose Society maintained that the cooperative was neither an investment scheme nor a financial institution that the EFCC warned the investment public about.

The Ministry of Trade, Industry and Investment said that the directive on downward review of rates of returns to investors was strange and ill-advised without the requisite statutory regulatory approvals.

According to the statement the directive claiming that the Bayelsa State Government has ordei0red a downward review of interest to be paid on contributions of Cooperatives to 15 per cent and fixing 6 months as the period for withdrawal of contributions is unauthorized.

The Bureau for Cooperative Development is an Agency under the supervision of the Ministry of Trade, Industry and Investment, the alleged statement is not known to the ministry.

The Ministry assures Cooperatives in Bayelsa and members of the public that the regulation of Cooperative activity is of great importance to the Bayelsa State Government, hence the enactment of the Bureau for Cooperatives Law in 2014.

The essence of the 2014 legislation is to ensure the regulation of cooperative activity in the state.

Policies that affect cooperative activities will only be made and announced after due consultation and requisite approvals have been obtained.

Member the public are hereby advised to remain calm and disregard the said statement, the statement read in part.