Promise of 30% to 50% return on stokvel cash in 30 days ends in arrest

A 39-year-old suspect is due in court for allegedly scamming stokvel savers of R8m.

The man was arrested by the Hawks at Palm Ridge in Gauteng on Saturday by the Serious Commercial Crime Investigation team based in Bethlehem, said Hawks spokesperson for Free State region Capt Christopher Singo.

“It is alleged that between 2017 until 2019 victims invested money in an investment scheme known as Tshwaranang Community Stokvel with a promise of getting an interest return of 30% to 50% within 30 days. The victims did not receive their money as promised.”

He said the suspect is expected to appear before the Phuthaditjhaba magistrate’s court on Monday to face charges of fraud and contravention of the Financial Advisory and Intermediary Services Act and money laundering.

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