Sou-sou and the pyramid very different

THE EDITOR: I find it incredible that articles continue to be published equating the long established custom of a sou-sou with the pyramid scheme. The two are very different.

In a sou-sou, one is guaranteed the equivalent of one’s contributions over a period of time, less a fee taken by the person who “runs” the sou sou.

The pyramid scheme pays out more than invested initially but it totally depends on a constant inflow of new investors to keep it afloat. Hence the requirement that participants have to bring in new investors. Eventually new investors will “dry up” and the money invested by the latecomers will be lost.

This is a scam which only benefits the early participants and should be shut down as soon as the authorities become aware of it.

The sou-sou offers people, mostly the less affluent in society, the chance to access a lump sum of money at a small fee paid to the organiser, without the burden of paying high interest rates and having to meet the sometimes onerous criteria to qualify for a loan from the established financial organisations.

Equating the pyramid scheme with the sou-sou system is totally misleading and the reporting should reflect this.

ROSEMARY HEZEKIAH

Woodbrook