LOCAL entrepreneurs in Accra have started expressing concern about a concern non-bank financial institution similar to the infamous Pyram and R5 that left some individuals and businesses traumatized and crippled a few years ago.

This deal which started 3 months ago, is gradually encompassing the region, even though it has taken a different strategy from those of Pyram and R5.

According to the entrepreneurs, an initiative by the Integrated Micro Finance and Business Network (IMF Business-net) that is being propagated as aiming to support local businesses with loan facilities is a well- calculated attempt to defraud people.

Already the police administration is keeping a watch on activities of the IMF Business-fund, as Chronicle learnt their Chief Executive was recently invited for interrogation by the police, after some clients reported the issue.

Some clients are also demanding the money used in purchasing the assessment form, even though it is not refundable.

The Chief Executive of the IMF Business-net himself denied that his outfit is out to dupe unsuspecting persons, stressing that they stand to gain nothing as a corporate entity but rather he had a spiritual vision to assist local businesses grow.

Unfortunately he refused to mention his name and none of his staff would give it out when Chronicle called at their Kokomlemle Oroko street offices.

Not even, incognito telephone calls could help get his name even though, Chronicle can reveal he boasts of a doctorate degree.

"It's just something I want to help. You see, God has given me this vision and I am down to earth to help them but God helps those who help themselves", he said sounding very religious.

He added that there is no collateral on the supposed loans to be given to the beneficiaries, since he was not a bank and "I don't disburse loan".

He said he's in contact with some banks for collaboration and Metropolitan and Allied Bank has formed the idea to join hands with them.

When Chronicle contacted Metropolitan and Allied Bank via telephone Thursday afternoon, they admitted having been contacted for a possible collaboration.

Mr. Kumi, a management staff of Metropolitan and Allied Bank told this reporter that IMF Business-net gave the impression that they were marshalling small scale enterprises for a network financing, and since the bank deals with small and medium scale enterprises and micro-financing, they are still considering the proposal.

He added that nothing concrete has been worked out except that the IMF Business-net has given them the assurance that their clients will be saving with the bank.

"So we asked them to furnish us with the list of clients because we have a threshold for opening savings accounts", Mr. Kumi said, adding that the IMF Business-net intends providing facilities to their clients using the bank.

Meanwhile Chronicle can reveal that contrary to what the IMF Business-net told the Metropolitan and Allied Bank that, they would have their clients to save with the bank, the management of the IMF Business-net has been telling their clients to save with banks of their choice.

This itself contradicts their presentation to the bank. Some of the entrepreneurs who spoke to this paper said even though they were interested in the loan, conditions attached disqualify them.

Chronicle undercover investigations at the offices of the IMF Business-net, minutes before disclosing real identity and seeking an interview with the Chief Executive indicated that individuals are not qualified for the loan, unless they team up to form a group of seventy (70).

Chronicle gathered that after getting the combined force of seventy, each member of the group would buy an assessment form for ?10,000, totaling ?700,000 per group, after which they would be expected to open accounts with banks of their choice and operate for a period of six weeks.

This paper gathered from staff of the IMF Business-fund that the reason for them opening the account was for the IMF Business-fund to ascertain if they can sustain an accounts before giving them the loan.

"They are expected to invest daily in their account, since the IMF Business would be taking back the loan on daily basis, in the form of SUSU", a staff told Chronicle undercover.

Chronicle can reveal that as at October 5 this year, the IMF Business-net had registered 41 different groups, each comprising 70 members, who each paid ?10,000 as assessment fee. By simple calculation, it means as at October 5 this year, the IMF

Business-net which started operating less than three months took ?28,700,000 from unsuspecting Ghanaians in the form of cash for assess ment forms, but none of these people numbering 2,870 qualified for the loan facility. ?28,700,000 isn't bad for three months, you know?

The loan facility ranges between one and ten million cedis, Chronicle established. Indications are that the number would have increased from the 2,870 used for this calculation as was collated at the date of October 5,2001.

The Chief Executive who spoke to Chronicle in his office himself admitted that no one has as yet been given any loan.

Meanwhile signals gathered by this reporter indicated that the IMF abbreviation attached to the company has made many clients think Business-net based on the acronym think it is an affiliated agent of the International Monetary Fund, thereby feel enthusiastic about it, even though some have started harassing management to get back their assessment fees.