In an operation reminiscent of a high-stakes thriller, the Directorate for Priority Crime Investigation (Hawks) have arrested two foreign nationals accused of masterminding an elaborate scam targeting women public servants in Mpumalanga.
The suspects, a 38-year-old Ugandan and a 45-year-old Zambian, allegedly lured victims with promises of doubling their pension funds. They even convinced some to resign from their jobs to cash out their pension funds.
Tenants wanted landlord to let them use chemicals to double his inheritance
The investigation began when a whistleblower, a local landlord, grew suspicious of his tenants’ behaviours. They were insisting on obtaining “special chemicals” for a dubious cash-doubling scheme.
What started as a simple complaint to security services quickly escalated into a major investigation. This involved both the Hawks’ Serious Commercial Crime and Serious Organised Crime divisions.
Hawks provincial spokesperson, Warrant Officer Thandi Tshabalala, detailed how the scam unfolded.
“Information was received by the Hawks … from the security company in the early hours of Friday, 08 November 2024. It was regarding two foreign nationals… suspected to be con artists,” she stated.
According to Tshabalala, the suspects had persuaded a local landlord in Mbombela to invest his inheritance. They promised to multiply his money.
Operation exposed bigger scam targeting women
The operation exposed the scammers’ tactic of preying on women in government roles.
“It is further alleged that the accused target women in the government sector. They convince them to resign and cash out their pensions. This… so that they can assist them with multiplying their pension money,” said Tshabalala.
The suspects managed to convince several individuals to hand over their life savings. They did this by luring victims with staged demonstrations and false assurances.
Tshabalala praised the whistleblower’s swift action. “Without the whistleblower, this might have dragged on with more victims falling prey.” The landlord’s initial suspicions led him to report the scam, which in turn enabled the Hawks to launch a search and seizure operation.
During the raid, the team discovered stacks of black-paper money notes. They also found bottles of chemicals purported to “clean” the money, and a steel safe.
The suspects face charges of fraud, contravening the Tax Administration Act and South African Reserve Bank (SARB) Act. They are due to appear before the Nelspruit magistrates’ court on Monday. Hawks provincial head, Major General Gerber, issued a warning to the public. He stressed that “there is no chemical or process in the world that can double your money”.
Worrying increase of scams in SA
South Africa has seen a troubling rise in scams targeting individuals who cash their pension funds. They then invest it in dubious schemes.
Numerous public servants, especially women close to retirement, have been lured into “get-rich-quick” promises. Only to find themselves destitute.
Scammers frequently entice victims with assurances of multiplying their funds. They exploit the vulnerability of those seeking financial stability post-retirement.
The Financial Sector Conduct Authority (FSCA) and the SARB have repeatedly issued warnings against such schemes.
Unfortunately, once victims realise they have been deceived, recovery is often impossible, as the funds are swiftly funnelled beyond reach.
This recent case highlights the urgency for South Africans to remain vigilant. They are urged to report any suspicious financial offers to authorities.
