‘Ponzi’ investors appeal for urgent probe

A 66-YEAR-OLD Chatsworth widow has been battling for four years because her husband, who is dead now, invested his life savings in an alleged ponzi scheme run by Carmol Distributors.

Investors who ploughed almost R1billion into the scheme are demanding answers from the SA Revenue Service (Sars) as to why their investigation is dragging on endlessly.

More than 4 000 investors, most of whom have lost their life savings, hoped they would get their money back this year.

The four-year wait has taken a heavy toll on some of the scheme’s beneficiaries. Some have died due to ill-health, a few have committed suicide and those indebted have lost their assets.

The widow, who did not want to be named, said her husband invested R500 000 in the scheme without her knowledge.

“We want answers because we are being kept in the dark. My husband died last year after suffering a heart attack. Since he lost his money, it has been downhill. He started to get sick and we were heavily burdened financially,” said the woman.

Carmol was first placed under investigation by Sars in 2014.

The company claimed to sell petroleum products.

A preliminary investigation conducted by Sars revealed that Carmol contravened the Banks Act. It conducted the business of banking by taking deposits from people illegally.

Carmol offered investors a return of 6-8% a month.

In August 2016, Carmol head Yunus Moolla was arrested with his wife, Fathima Carawan. The couple were released on R100000 bail each. Their trial is set to begin in the Durban Commercial Crimes Court in September.

In a notification sent out by Bombani Liquidators, who are handling the matter, the company said Sars intended to claim tax of R285m for 2012-2015.

“The understatement penalties have been imposed at 150% of the amount due. We have asked Sars to provide reasons for the assessments. This would enable taxpayers to formulate objections if necessary.

“The liquidators are bound to follow the prescribed procedures in dealing with the objections and appeals,” said Stewart.

He said the process was timeconsuming.

Stewart said in the notification that should no resolution be achieved, the matter would have to go to the Tax Court, then the Supreme Court of Appeal or the Constitutional Court.

Only once the Sars claim had been finalised would the liquidators be able to prepare and lodge a liquidation and distribution account.

“Creditors are reminded that payments can be made in terms of such an account that has been open for inspection, free from objection and confirmed by the Master of the High Court.”

Joint liquidator Mike Stuart said: “Sars has requested an extension to mid-june to respond. Only then can we file formal objections to the assessments.”

Sars spokesperson Sandile Memela said: “Any delay that affects a case is regrettable.

“Unfortunately, complex matters may take longer to conclude. However, we remain committed to a speedy resolution.

“Sars cannot provide details of this matter.

“Sars is prohibited from sharing or divulging information pertaining to any individual taxpayer under the 2012 Tax Administration Act.”

Another Carmol investor, who asked not to be named, said the delay had caused him to lose some of his assets, and denied him the opportunity of sending two of his children to university.

“We did not know what we were getting into and now it’s too late.”