Counting losses in cash and reputation
TEMIBISA pastor John Lybon Mkhatshwa has more than R1.2million he cannot access.
Mkhatshwa is one of thousands of people who invested money in IM Auctioning Direct which is now the subject of an investigation by the Directorate for Priority Crime Investigation [Hawks].
According to the organisation’s website there are three investment levels – silver which is between R1 000 and R3 499, gold at R3 500 to R9 999 and the platinum range which is between R10 000 and R30 000.
Subscription is charged at R150 for silver, R300 for gold and R450 for the platinum level.
The company which operates online, offers commission of between 5% to 15% weekly.
“I saw it as something beautiful,” said Mkhatshwa who was introduced to the scheme by Mavis Maluleke who came to make a presentation at his church in Ivory Park.
Mkhatshwa said he was sold on the scheme when Maluleke emphasised that it was run by Christians.
Mkhatshwa was sold on the idea after visiting the website –
He then invested R20 900 from his church account. His wife took out a loan and opened three accounts of R10 450 each.
He said they were encouraged to recruit more people and stood to earn a further 10% of whatever their recruits invested.
Mkhatshwa said he recruited “many” church members. To join, a person has to register online, deposit a minimum of R1 150 via a bank account and start earning commission.
Mkhatshwa was happy to see his commission balloon to over R70 000 in a few weeks. He managed to withdraw less than R5 000 before the scheme started experiencing problems in July last year.
Investors couldn’t withdraw money and when they enquired, said Mkhatshwa, they were told by Norman Mhlongo, who introduced himself as the managing director of the Nguga Investment “the system was overloaded”.
Later, a message was displayed on the site saying: “Dear Client, Please be advised that the office has been investigated by Durban Commercial Crime and all activities have been put on hold. Pl”
But this has now left Mkhatshwa and other investors in trouble.
In a bid to recover his money, Mkhatshwa travelled to Durban where he hoped to meet with Mhlongo. But the meeting didn’t take place.
Instead he met other frustrated investors also looking for Mhlongo who could not be reached for comment yesterday.
Mkhathswa’s profile on the IM Auctioning website shows that his balance now stands at R1.22 million.
“People trusted me because I’m a pastor. Now I have lost credibility in the church and the community.”
ledwabal@sowetan.co.za