By BUUMBA CHIMBULU
THE Securities and Exchange Commission (SEC) has issued a red alert to the public on the illegal operation of an investment scheme called AGR Solar Energy Company Ltd marketing itself on social media such as Facebook and WhatsApp.
The AGR Solar scheme encourages recruiting other people for monetary rewards and other benefits.
SEC has warned that the scheme’s promoters and/or representatives are not licensed or authorised or registered by the Commission to provide such investment services or to solicit for funds from the Zambian public for investment purposes.
The scheme was being marketed on social media platforms such as Facebook and WhatsApp as being involved in renewable energy projects, and has been inviting participants to “rent” or “purchase” photovoltaic (PV) panels, which are allegedly used to generate income through energy-related activities.
But SEC acting Chief Executive Officer, Diana Sichone, contended that the Photo voltaic (PV) panels were not authorised products in the Zambian capital markets.
“The Commission therefore advises the public to be cautious and report all matters of fraud to the Zambia Police for their further action,” Ms Sichone said.
She guided the public on how to be smart and what to do to reduce investment fraud and other risks such as asking questions.
Ms Sichone noted that fraudsters were counting on consumers not asking questions, stating that “do your own due diligence by doing independent research on the investment scheme or products being offered to you. Do not be in a hurry to invest.”
She encouraged consumers to conduct research on a product before investing as this enabled them to assess the level of risk associated with the investment and the expected return thereby guiding you in selecting the most favourable investment.
“Unsolicited emails, messages and all manner of adverts should not be the sole basis for your investment decisions.
Understand a company’s business and its products or services before investing. If need be, consult a duly SEC licensed broker/dealer and/or investment adviser. Do not fail to ask the right questions,” Ms Sichone added.
