On fin24.com

Finweek English Edition - - THE WEEK IN THE NEWS -

Stokvel mem­bers are be­ing tar­geted to join the al­leged pyra­mid scheme MMM, ac­cord­ing to Andile Mazwai, CEO of the Na­tional Stokvel As­so­ci­a­tion of SA (Nasasa). “They (MMM) have been go­ing around town call­ing them­selves ei­ther a stokvel or telling peo­ple that their op­er­a­tion is like that of a stokvel,” said Mazwai. “A stokvel is a com­mon bond among in­di­vid­u­als, who save their money for a com­mon pur­pose,” ex­plained Mazwai. “[I]t is pri­mar­ily a sav­ings ser­vice or prod­uct.” MMM, he said, “prom­ises peo­ple re­turns, but the prob­lem with those re­turns is that they’ve got them from the cap­i­tal that other peo­ple put in”.

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