Alleged R500m scammers remanded in custody
Approximately R500 million in deposits from potential clients as an investment into their company was deposited to their company account, however, no returns were paid to some of the investors.
File image: iStock
Founder and director of Pietermaritzburg-based investment company, Supreme National Stock Holdings, Sandile Sibiya, 29, and his accomplice Nomalizo Sibiya, 37, briefly appeared in the Pietermaritzburg Magistrates’ Court on Monday for alleged fraud and contravention of the Bank Act.
Between June 2019 to November 2019, the accused were allegedly receiving deposits from the potential clients as an investment into their company. They were lured with a promise the company allegedly would utilise their investments to purchase horse and trailer trucks that would be working in the coal mines.
The income derived from the transporting of the coal was to generate a monthly return for the investors.
Approximately R500 million was deposited to their company account, however, no returns were paid to some of the investors.
As a result, a case of fraud and contravention of the Bank Act was reported at Pietermaritzburg police station and the case docket was allocated to Hawks members from Pietermaritzburg Serious Commercial Crime unit for investigation. On Sunday, the two were arrested and charged accordingly.
The case was postponed to January 10, 2020, for formal bail application.
(Compiled by Kaunda Selisho)
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