Friday, January 28, 2011

Ponzi accused to request bail

Ponzi accused to request bail
January 2011

Goodman Goqo is facing a number of corruption cases. Photo: Sbu Ndlovu

Kamini Padayachee

Goodman Goqo, who stands accused of running a Ponzi scheme, will learn this week whether he will be granted bail.

Goqo, 26, has been behind bars since he was arrested at his home at Plantations, Hillcrest, last Tuesday. He appeared in the Durban Commercial Crime Court the same day and was remanded. Goqo appeared in court again on Friday for his bail application, which was adjourned to this week.

The State, which is opposing his release on bail, is expected to argue its case on Wednesday.

According to the charge sheet, Goqo was the director of Ingede Mineral Holdings, a private company that undertook to manage investments. Goqo allegedly told investors in written agreements that their money would be invested on the stock market. He promised them a 30 percent return over a six-month period. Their capital was also guaranteed.

Several people borrowed money, sold their houses and used their pensions to invest in the scheme. However, the company allegedly operated as a bank, accepting deposits when it did not have the authority to do so, and did not invest the money on the stock market. The charge sheet says the money was deposited in Ingede Mineral Holdings’ bank account and was then transferred to Goqo’s personal account.

The company was shut down by the Reserve Bank last year. The bank appointed attorney Johan Kruger to take control of Ingede and to recover about R73 million to pay back its more than 3 000 investors. Kruger raided Goqo’s home in June last year and seized assets, including expensive cars, worth more than R2m.

Goqo has been charged with fraud and contravening the Banks Act, the Financial Institutions Act and the Financial Advisory and Intermediary Services Act.

1 comment:

  1. Dirty scumbag. They are always obese.But this should be his day of reckoning. It's sorry we can't always get the proper media covering a case like this deserves.