Colombia declares state of emergency

[Judi Lynn]

Colombia declares state of emergency
Nov 17, 2008 05:19 PM

LIBARDO CARDONA
THE ASSOCIATED PRESS

BOGOTA, Colombia–Colombia has declared a state of emergency to crack down on illegal investment schemes that lured millions of people with promises of improbably high payouts, only to collapse amid rioting.

Government officials vowed to repay the poorest investors and sent police to shut down other alleged pyramid scheme operations today, even though some loyal clients marched through the streets to defend companies that had offered interest rates as high as 150 per cent a month.

"Citizens should understand that the government is protecting them," Interior Minister Fabio Valencia said as he announced the emergency measures. They include boosting prison terms for those who illegally collected money to 20 years from six, and giving mayors and governors police powers to shut down such businesses.

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Furious clients stormed and looted local branches in rioting that left 13 towns under police curfew and two men dead last week. Officials seized 92.4 billion pesos ($42 million) from 68 of the company's offices and arrested 52 employees, police said.


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http://www.thestar.com/News/World/article/538463