A group of people are distraught after another money-making scheme collapsed without paying out its members this week.
Eagles Stockvel, a pyramid investment scheme modelled after the notorious MMM, was started by Nkonkobe municipality employees.
It attracted hundreds of Fort Beaufort and East London residents.
To take part in the scheme, participants had to pay R2 500.
They were promised that within 48 hours a 100% interest payment of R2 500 would be made, while their original R2 500 would be reinvested so that further interest payments could soon be made.
One investor, who got away without losing any money, said: “The stokvel was similar to MMM. But we knew who started it because it was started on WhatsApp.
“We had a group. A member would provide help of R2 500 only on Mondays and Fridays.
“An old member introduces or recruits someone new who wants to provide help,” said the woman, who asked that her name be withheld.
The initial rule was that people only paid R2 500 as a once-off payment.
However, the rules were changed and the group was informed that a bank account would be opened and members would be required to deposit R2500 every month, as well as a R200 banking fee.
Last week people who were meant to “help” did not do so – and that was how the problems began.
On Monday, the source said she paid another member via a deposit a local supermarket but immediately reversed it when she found out that people had been blocked from the WhatsApp group.
Rumours spread that the woman who started the scheme was seen moving out of her flat, had been absent from work for two days, and was seen at the bank with some of the administrators of the group.
Investors started to panic.
“There is more than R100 000 in that account,” the source said.
On Wednesday a number of members went to the municipal offices to confront the woman.
“People trusted her because she’s the budget manager for the municipality. More than 700 people are still waiting for their money,” she said.
Other members told the Dispatch the woman had promised to repay them today. “It was a Ponzi scheme,” one member said. “To get paid they needed to recruit people. It got out of control, and they couldn’t manage it. People were not even getting back the capital they invested.”
Nkonkobe spokeswoman Siya Hompashe said they had received complaints about both the scheme and the woman who started it.
“A decision was taken by council that all employees who were part of the administration of the scheme would be subjected to a disciplinary hearing and there would be an internal investigation,” she said.
Nkonkobe mayor Anele Ntsangani said news of the scheme came as a shock, especially when he found out that employees from the finance office were the masterminds.
“I have requested a report on the matter,” he said.
Attempts to contact the alleged mastermind were not successful at the time of writing.
A number of cases were said to to have been opened against her but provincial police spokeswoman Colonel Sibongile Soci could not confirm this at the time of writing yesterday. — vuyiswav@dispatch.co.za
‘Stokvel’ pyramid collapses ... Ponzi scheme falls off rails
Eagles Stockvel, a pyramid investment scheme modelled after the notorious MMM, was started by Nkonkobe municipality employees.
It attracted hundreds of Fort Beaufort and East London residents.
To take part in the scheme, participants had to pay R2 500.
They were promised that within 48 hours a 100% interest payment of R2 500 would be made, while their original R2 500 would be reinvested so that further interest payments could soon be made.
One investor, who got away without losing any money, said: “The stokvel was similar to MMM. But we knew who started it because it was started on WhatsApp.
“We had a group. A member would provide help of R2 500 only on Mondays and Fridays.
“An old member introduces or recruits someone new who wants to provide help,” said the woman, who asked that her name be withheld.
The initial rule was that people only paid R2 500 as a once-off payment.
However, the rules were changed and the group was informed that a bank account would be opened and members would be required to deposit R2500 every month, as well as a R200 banking fee.
Last week people who were meant to “help” did not do so – and that was how the problems began.
On Monday, the source said she paid another member via a deposit a local supermarket but immediately reversed it when she found out that people had been blocked from the WhatsApp group.
Rumours spread that the woman who started the scheme was seen moving out of her flat, had been absent from work for two days, and was seen at the bank with some of the administrators of the group.
Investors started to panic.
“There is more than R100 000 in that account,” the source said.
On Wednesday a number of members went to the municipal offices to confront the woman.
“People trusted her because she’s the budget manager for the municipality. More than 700 people are still waiting for their money,” she said.
Other members told the Dispatch the woman had promised to repay them today. “It was a Ponzi scheme,” one member said. “To get paid they needed to recruit people. It got out of control, and they couldn’t manage it. People were not even getting back the capital they invested.”
Nkonkobe spokeswoman Siya Hompashe said they had received complaints about both the scheme and the woman who started it.
“A decision was taken by council that all employees who were part of the administration of the scheme would be subjected to a disciplinary hearing and there would be an internal investigation,” she said.
Nkonkobe mayor Anele Ntsangani said news of the scheme came as a shock, especially when he found out that employees from the finance office were the masterminds.
“I have requested a report on the matter,” he said.
Attempts to contact the alleged mastermind were not successful at the time of writing.
A number of cases were said to to have been opened against her but provincial police spokeswoman Colonel Sibongile Soci could not confirm this at the time of writing yesterday. — vuyiswav@dispatch.co.za
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