NCP figures behind Darfur Ponzi scheme, says Sudan justice minister

May 5, 2010 (KHARTOUM) — The Sudanese government today admitted that two members of the ruling National Congress Party (NCP) were behind the investment fraud row that erupted last month causing violent clashes between the victims and police in North Darfur capital state of El-Fasher.

Ponzi schemes are named after a 1920s con artist in the United States, Charles Ponzi. They rely on a pyramid of investors who contribute money to a fraudulent operation under which money from newer investors is used to pay off earlier investors until the whole scheme collapses.

At a press conference in Khartoum today at the Sudanese justice minister Abdel-Basit Sabdarat said that two regional councilmen, Adam Ismail Ishaq Omar and Mussa Sadiq Mussa Beshara are implicated in running the scheme which collapsed causing potential losses of up to $175 million which included money belonging to investors in other parts of country and abroad

Both men have been taken into custody along with 56 other suspects, Sabdarat said adding that they will face charges under criminal law relating to dishonored checks, breach of trust, fraud and illegal gain. He said that two accused were ex-members of the police and that they are a disgrace to the police because they were prohibited from possessing a trading license.

The minister also denied his knowledge of weapons trade or money laundering in this scheme.

Many investors had sold land or ploughed in their savings to take part in the get-rich-quick scheme. The marketplace in the centre of El-Fasher has been renamed “Al-Mawasir Souk (market),” after the local colloquial Arabic for a swindle. Al-Mawasir has also become the name used across Sudan for the scam.

At least three people were killed last Sunday when police opened fire at protestors who attempted to march towards the governor’s residence accusing him of involvement.

The demonstrators were also angry that the governor of North Darfur Osman Kibir backtracked on a promise to compensate them for the money they lost but his office later issued a statement saying that this is “interest money” which is forbidden under Islamic Sharia’a law.

But today Sabdarat said that the complaints filed in this case did not implicate Kibir. He further said that victims will be compensated in a fair manner without any preferential treatment.

Beshara and Omar were easily elected to North Darfur’s regional assembly, respectively beating their nearest rivals by 8,825 votes against 1,426 and 4,085 versus 1,200, according to Sudan’s electoral commission.

The Minister of Interior, Ibrahim Mahmood Hamid, today affirmed that the security situation all over Darfur states and Al-Fasher city is under full control.

A curfew was imposed yesterday in El-Fasher which was lifted Wednesday afternoon.

(ST)