Tuesday, August 2, 2011

NEWSFLASH: South Africa calls TVI Express "largest pyramid scheme" in recent years

From LegalBriefToday, a South Africa website  http://www.legalbrief.co.za/article.php?story=20110801084313377

This should be the full article:  http://www.greytown.co.za/gazette.html
Investigation into pyramid scheme 3-AUG-2011
An investigation into the outlawed TVI Express , the  multi-level marketing venture, has been launched by the Reserve Bank through the appointment of a temporary inspector.   It is claimed that TVI could be one of the biggest pyramid schemes in South Africa involving billions of rands.Umvot i"investors" who lost money through TVI are asked to contact the inspector, who is an attorney, John Kruger on his website , inspector@tipoffsatwork.co.za with details of how much they had invested and into what bank account they had deposited the money.  TVI, also known as Travel Ventures International, started operating in Greytown last year and continued until May this year.  The scheme, which is banned in several overseas countries, targetted public servants in KZN  - about 50 000 are estimated to have invested with a total of billions of rand.
Agents who marketed the scheme, accepted deposits from the public for what its claimed were valueless travel vouchers which allegedly have no intrinsic value whatsoever.
In May this year the Greytown Gazette reported that Dudu Mabaso Shangase, PA to former Umvoti Mayor, Petros Ngubane had been arrested and appeared in the Kwa Dukuza magistrate's court on charges of fraud.  This followed complaints lodged by two "investors". According to a report in the "New Age Online" in 14th April headlined "scammed in get rich schemes" two investors had claimed that they had borrowed money to invest R21 600 and had not received a cent. Shangase had shown them a bank statement revealing hundreds of investors from the area -she had told them that loans were being raised to pay investors and appealed for them not to lay charges against her. Police are assisting Mr Kruger with the investigations - information can also be faxed to 086 657 1360.
A reminder to members of the public to make use of the hot line set up by KPMG to assist in the forensic audit currently underway to investigate reported irregularities in Umvoti Municipality prior to the take over by the new Council in May.
Any members of the public and municipal staff with factual information is asked to phone the independent KPMG hotline on 0800 204 975 - calls are free; totally confidential and if so required, the caller may remain anonymous.
It is understood that a number of service providers have not yet received payment for service provided prior to June 2011 - they are urged to contact the hotline with full details so that these can be investigated.
Following many allegations made by the public this hotline was set up by the Municipality in consultation with KPMG to investigate and to assist in curbing the perceived corruption. Callers to the hotline reporting incidents of fraudulent, corrupt or unethical practices are asked to provide factual details as to whom was involved, details of the incidents, how often carried out , monetary value and any other information available.
Anyone with any such information who does not take this opportunity to report such misconduct is actually condoning the perpetrators by allowing them to get away with it. Input from the public is essential so that any form of corruption which might have been taking place is rooted out.
Enhanced by Zemanta

No comments: