The Bank of Namibia (BoN) after a thorough investigation has concluded that the operations of the Mufhiwa Building Projects are illegal and instructed to stop its operations. On 4 December, the central bank already issued a public statement in this regard but allowed the directors of Mufhiwa an opportunity to present its business model to the Bank of Namibia. The bank then did an assessment, which revealed that the business activities of the scheme contravene the Banking Institutions Act, does not generate income through the sale of a product or any service to its members. The joining N$200 fee, the Bank of Namibia says, is used to pay existing members and directors. The central bank says as soon as the recruitment of new members stops, all members and participants in the scheme will not receive any payment. According to the Mufhiwa scheme, members would receive payments to have their home loans settled, purchase new houses or receive money to renovate their houses. The activities of the scheme, the bank says, constitute a pyramid scheme and therefore is illegal. Members of the public have been warned to make inquiries with the Bank of Namibia before joining business resembling pyramid schemes.