DAR ES SALAAM – The Business Registrations and Licensing Agency (BRELA) in Tanzania has taken decisive action against a network of companies operating under the name Leo Beneath London (LBL), revoking the registrations of 11 entities for engaging in illegal pyramid scheme activities. This move comes amid a broader crackdown on illicit financial schemes that have been defrauding Tanzanian citizens.

BRELA Chief Executive Officer, Godfrey Nyaisa, announced that the companies, registered across various regions of the country, had violated Section 400A of the Companies Act, Chapter 212. Specifically, they were found to be conducting business activities far outside the scope of their registered objectives, which were primarily listed as media and advertising.

"The reason for the revocation of these companies is their violation of the provisions of Section 400A (1) (e) of the aforementioned Act, by conducting business activities outside the objectives outlined in the companies’ constitutions and the operational guidelines during registration," stated Mr. Nyaisa.

The affected companies include: LBL Mtwara Media Company Limited, LBL Morogoro Media Company Limited, LBL Geita Advertising Media Limited, LBL Mbeya Media Limited, LBL Future Vision Advertising Agency Company Limited, LBL Mbezi Advertising Media Company Limited, LBL Ubungo Media Limited, LBL Mabibo Media Company Limited, LBL Mbagala Media Company Limited, LBL Gongo la Mboto Media Advertising Company Limited, and LBL Dar es Salaam Kigamboni Advertising Company Limited.

BRELA followed due process by issuing notices to the companies between January 2nd and 26th, providing them an opportunity to explain their operations. However, the companies failed to provide satisfactory explanations, leading to their deregistration, which took effect last Thursday.

This action by BRELA coincides with the arrest of 38 individuals who are currently in police custody for their involvement in the LBL pyramid scheme. Authorities have emphasized that pyramid schemes are strictly illegal in Tanzania, and they have urged the public to remain vigilant and report any suspicious activities to the relevant government institutions and the police.

Furthermore, the Bank of Tanzania has publicly distanced itself from LBL, denying any involvement in the company's operations. This statement comes amid concerns that the scheme may have falsely claimed endorsements or partnerships with reputable financial institutions.

The deregistration of these companies serves as a strong reminder to businesses operating in Tanzania that they must adhere to the laws and regulations governing their activities. The government is committed to protecting its citizens from fraudulent schemes and ensuring a fair and transparent business environment.

[Copyright (c) Global Economic Times. All Rights Reserved.]