The Bank of Namibia formally declared TVI Express a pyramid scheme in November 2010, prompting Namibian members to threaten legal action against the bank. The Bank of Namibia (BoN) responded by issuing additional press releases, warning the public against participating in TVI.
TVI members initially argued that the BoN lacked jurisdiction over them, claiming all Namibian participants operated as sole traders. This defense did not hold up. Lawyers then asserted that TVI Express did not collect funds from the public, a statement difficult to reconcile with the company's membership fees.
These arguments were rejected. The Bank of Namibia officially maintained its position that TVI Express operates as a pyramid scheme. The bank also announced it would pursue individuals involved in the scheme, stating that such activity contravenes Namibian banking laws.
The bank's move to enforce penalties follows a nine-month period since its initial declaration. During this time, TVI Express members continued promoting the scheme in Namibia. The BoN had previously warned that promoting or participating in TVI Express carried penalties of a N$1,000,000 fine or ten years imprisonment.
Magnus Nangombe, head of TVI Namibia, responded to the BoN's official clarification. He stated that TVI activities were being "restructured to operate according to the continent." Nangombe indicated that "many changes" were underway, including reviewing "what changes are needed" locally.
Nangombe's proposed changes do not involve altering TVI's core business model. Instead, he described them as a "redefinition of terms involving the taking of money from the public." This strategy seeks to make TVI Express appear legal by replacing specific words with more ambiguous, generic terminology.