By Kamini Padayachee
Hoping to get enough money to buy a car, Umlazi teacher Thabisile Ndlovu invested her savings of R20 000 with Hillcrest-based company Ingede Mineral Holdings.
But on Monday Ndlovu joined dozens of dejected investors in IMH who submitted proof of their investments with the company to an accounting firm in Westville, because the investment company has been effectively shut down by the Reserve Bank for contravening the Bank Act and seems to have been operating as a Ponzi scheme.
The Reserve Bank has frozen the company's bank accounts and has employed Johan Kruger, of Bowman Gilfillan, to act as fund manager.
Kruger in turn hired forensic auditor Eckhard Volker, of accounting firm Thabani Zulu and Co, to ascertain how much money was invested, by whom and what had happened to it.
Police are also investigating the investment company.
The company, which was run by Goodman Goqo, allegedly used agents to advertise the scheme at government institutions and used a "guaranteed 30 percent monthly return for life" tag line.
Volker said in an affidavit submitted to police that 3 100 people had invested R73-million in IMH as "investment to trade" over nine months.
He said many had borrowed the money, sold their houses and used their pensions as investments. Preliminary investigations showed that investors' funds had been pooled and used to finance interest payments, with some funds being withdrawn by Goqo for his own use.
Ndlovu, the breadwinner in her home, said she was upset and disappointed because she had invested her hard-earned money in February this year.
"That money was my blood, sweat and tears, and it took me three years to save it. This was the first time that I invested money and I thought it was a good company because people in my area told me about the money they were receiving."
Another upset investor, who declined to be named, said he had borrowed money from banks to invest in the company.
"I borrowed substantial amounts from various financial institutions to invest the money because the company seemed genuine, and now the banks want me to pay back money I don't have."
The man said he had been financially ruined by the downfall of the scheme.
"My financial situation is terrible; my bank account is in the negative and debit orders can't go through. I don't even want to talk about it."
Another first-time investor from Umlazi, who also did not want to be named, said he was angry with the investment company. "I trusted them with this money and now I don't know what I am going to do. I'm unemployed and I don't know how I am going to support my family," he said.