Rwanda has lifted a ban on operations of an asian pyramid scheme QuestNet which conducts its business operations through Independent Representatives (IRs) and its eCommerce based business model that does not need a physical office.
QuestNet had been banned in 2009 on the basis of contravening companies and Tax laws of Rwanda.
An Investigation launched by the National Bank of Rwanda quickly saw the company banned by order from the finance minister.
However, Rwanda’s Minister of Finance and Economic Planning, John Rwangombwa scripted a letter allowing QuestNet to resume its operations in Rwanda by first adhering to specific conditions.
The conditions include; registering the company in Rwanda, obtaining a physical address, registering as a taxpayer, making monetary transfers in line with the country’s laws, declaring members of the QuestNet chain to tax authorities, and storing the items being sold in a warehouse in Rwanda.
“Upon review of your request to lift the ban on your business, and after consultations with different stakeholders, we hereby lift the ban and allow your company to resume operations as long as you abide with the conditions,” wrote Minister Rwangombwa.
QuestNet is actually a pyramid scheme and is already banned is several American and Asian countries.
It quickly established what it describes as a “life changing vehicle”, but what is considered by most a life destroying scam, in Africa.
QuestNet says it sells two products. One of them is the Bio Disc, a miracle filter which ‘energises’ water.
The other is the Chi Pendant, which is supposed to protect and therefore vastly improve your well-being by banishing ‘bad waves’ such as those from microwaves, mobile phones and radiations from other electronics.
In 2010, FRANCE 24 editorial team examined QuestNet’s activities.
It was discovered that Questnet is a non-sustainable system in which the products are phoney and the salespeople deceived.
The QuestNet managers con potential salespeople into believing that they will easily find others willing to sell the products too and therefore receive regular commission.
However, while the first few of those involved do earn some money from the system – an outcome used to convince others that it works – they soon become too many salespeople and not enough buyers to purchase the product.
The system is illegal in many countries, including France, Belgium and Canada.
The geographical origin of QuestNet is unknown, although online records show that the company originated in the US, when it worked under the name of “Gold-Quest International”, selling coin collections to indigenous Americans.
In 2008 the assets of “Gold-Quest International” founder were frozen after a court order.
Today, the company is making tracks in Africa. Its first targets were Uganda, Kenya and Rwanda, where it tried to commercialise coasters that supposedly protect you from contracting HIV.
The sale of the products is fraudulent and targets the poorest of society – those who are desperate to make money quickly.
The scam destroys relationships, because it’s to family and friends that recruited salesmen then sell the scheme to themselves.
They convince their friends into indebting themselves in order to enrol in the scheme, and later find themselves responsible for both their own and their friends’ financial struggles when the pyramid collapses.
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