Frenzy over financial bridging scheme payouts

A Polokwane attorney is expecting instruction for claims on behalf of local investors against the estate of a deceased stakeholder of controversial Choice Lifestyle Change financial bridging scheme amid a frenzy over payouts reportedly having been stopped since December after news broke of his death.
Explosive reaction to reported stopped pay-outs by the financial bridging scheme, which in the recent past has taken Polokwane by storm with scores of investors rushing out to invest with Choice Lifestyle Change, is characterising fear among individuals who are concerned about not getting their money back after monthly payouts of a reported up to 15% on investment had apparently been stopped.
It was learnt that the scheme, with an office in the city, is claimed to have been linked to Christian outreach initiative Free Agape Enterprises (Pty) Ltd. In an interview at the time of going to press Philip Smit, local lawyer who also represents Agapé Christian congregation in Polokwane, emphasised that the church had no connection with Choice Lifestyle Change. According to Smit the scheme operated under the trade name Choice Lifestyle Change but wasn’t a separate entity, and that Free Agape Enterprises (Pty) Ltd was considered the legal person and shareholding belonged to the estate of the late director, Maarten Stapelberg.
Smit advised local investors to urgently institute claims against Stapelberg’s estate in an attempt to get back their capital investment and not wait on empty promises. He conceded to be expecting instruction on behalf of several clients who have invested in the scheme in the past to institute claims against the estate within the next week. He used the example of one family respectively having invested R750 000, R400 000, R70 000 and R60 000 with Choice Lifestyle Change.
He pointed out that Polokwane-based representative of Choice Lifestyle Change, Wouter Botha would allegedly be informing investors that they awaited the appointment of a director by the executor of Stapelberg’s estate. To the contrary he expected claims to be instituted against the estate and the executor who in all probability would request a forensic audit, which might add to a possible discovery of signs of the operation of an alleged pyramid scheme that could lead to the scheme being reported to the Financial Services Board (FSB) and a criminal case might be registered. All along attempts to secure comment from Botha, who has reportedly been communicating latest developments via a WhatsApp group with investors, have been unsuccessful despite Polo­kwane Observer making umpteen calls and visits to his place of business at 16 Meteor Street in Bendor. The last attempt to approach him for comment was on Tuesday afternoon, but to no avail. Also the recording on the call centre number informs the caller that the office was closed until further notice and that clients would be notified about developments by email.
An auditor who had been alerted about the operations of the scheme for the first time last year and subsequently advised clients enquiring about investment possibilities against it, confirmed concern among investors stressing about not having received payouts since December. In an interview he raised the issue of alarm bells initially going off due to several reasons, such as the company reportedly not being registered, that their documentation pointed at perceived anomalies and figures not tallying.
In a letter addressed to the editor this week, a Polokwane resident raised the issue that many investors stood to be disillusioned after having invested their savings and pension monies with Choice Lifestyle Change. “The investors are all too afraid to hear the truth and are waiting in vain for something to happen. What a tragedy!”
A Polokwane client who invested a sum of money with the bridging scheme, confirmed that investors indeed were waiting on follow-up correspondence while wondering about the future of their investments, but that she had understanding for the processes taking its course. According to her they had been notified via WhatsApp on Friday that procedures were underway and that feedback was awaited in this regard.
The woman, who wanted to remain anonymous, was of the opinion that the service received from the company thus far was top notch, as was correspondence by means of assistance from the call centre in the Cape. They have always been very helpful, reckoned the source. She said the same counted for pay-outs being made by the Polokwane office. According to her they had received their last pay-out in December and nothing ever since.
A press statement by the FSB, dated 12 October last year and warning the public to act with caution when dealing with Choice Lifestyle, a division of Agape Free Enterprises (Pty) Ltd, is still posted on the internet. In the release the FSB pointed out that Choice Lifestyle, was not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) to render any financial advice and intermediary services. Response to an enquiry sent to the FSB as to whether any further statements have been issued was still awaited at the time of going to press.

Story: YOLANDE NEL
>>observer.yolande@gmail.com