According to the central bank, following a publication in the Daily Graphic of Monday, January 24, 2011, which reported the presence the company it conducted investigations into the company.
The Bank however says its investigations have shown that Capital Builders Network operations in the country have not been licensed by the central bank, which is the regulator of financial businesses.
“Preliminary investigations undertaken by the Bank of Ghana into the operations of the company indicate that it is involved in some form of deposit mobilization activity for which a licence has not been obtained from the Bank of Ghana”, it said in a statement issued on Wednesday January 26, 2011 copied to ghanabusinessnews.com.
“Indeed, the operations resemble a ‘pyramid’ or ‘ponzi’ scheme as the pay-off of earlier contributors depends on the continuation of a chain of subsequent joiners of the scheme”, the statement added.
The Bank of Ghana adds that it is conducting further investigations into the background of the directors and the activities of the company to safeguard the financial system. and cautioned the general public to be mindful of its dealings with the firm.
By Ekow Quandzie