Sunday, May 29, 2011
Pyramid scheme? No, it's my pyramid cake May 29, 2011 3:08 AM | By BONGANI MTHETHWA
May 29, 2011 3:08 AM | By BONGANI MTHETHWA
Businessman parties like there's no tomorrow as Reserve Bank probes his get-rich scheme
FLUSH WITH CASH: Jabulani Ngcobo had the huge birthday cake on the right specially made so that he could jump out of it at his R1-million birthday bash this weekend Pictures: THEMBINKOSI DWAYISA
'I'll be a billionaire through this company'
The Reserve Bank is investigating an alleged pyramid scheme run by Durban businessman Jabulani Ngcobo - who last night invited a host of celebrities to his 26th birthday bash at a top city hotel.
Ngcobo, dressed in a designer outfit, intended to leap out of a giant cake.
And the R1-million party, where more than 300 celebrities and business executives were treated to champagne and caviar, continues today on board a chartered yacht.
On the guest list were Generations actors Dumisani Mbebe and Winnie Ntshaba, socialites Khanyi Mbau and Sizwe Dhlomo and President Jacob Zuma's Mabheleni Ntuli. A ctors Zolisa Xaluva, Thato Molamu, Khabonina Qubeka and Mutodi Neshehe were also there.
Last night socialite Khanyi Mbau, who was paid an undisclosed fee to attend, said she did not know Ngcobo personally. "I was invited and paid an appearance fee. They flew us down ... and they've treated us nicely," she said.
However, the Sunday Times can reveal that Ngcobo, the owner of Cash Flow Properties, is suspected of running a sophisticated multimillion-rand pyramid scheme.
The company apparently has more than 1000 investors and regularly places adverts in local newspapers and radio stations promoting its investments opportunities. On its website it promises investors "daily returns of between 10 and 30% on investments".
On Friday Reserve Bank spokesman Hlengani Mathebula confirmed that Cash Flow Properties was being probed for contravening the Banks Act of 1990 (Act 94 of 1990). "We don't have a record of this company . . . it's not registered with the Reserve Bank," said Mathebula.
However, Ngcobo was yesterday adamant that his company was operating legally and was, in fact, registered with the Reserve Bank. He owns other companies, including Cash Flow Equities, which he co-owns with Prince Misuzulu Zulu, one of King Goodwill Zwelithini's sons.
Party co-ordinator, Sindi Dube, meanwhile, said guests at the "cocktail bling party" last night were treated to overflowing champagne flutes and "ample servings of caviar and fresh oysters".
Also on offer was a selection of Chivas Royal Salute and Johnnie Walker Blue whiskies and Remy Martin and Hennessy brandy. The main menu featured salt and peppered skewered prawns, Thai katafi fish, spicy lamb and garlic skewers and lamb on a spit.
Guests were entertained by kwaito artist L'vovo Derrango and comedian Felix Hlophe, among others.
Today they will be treated to more champagne on board a yacht, followed by an afternoon braai at his R2.5-million, five-bedroom home in New Germany in Pinetown, west of Durban.
Ngcobo, whose highest educational qualification is a grade 12 certificate, started his business empire with a debt-collecting operation. In 2009 he opened Cash Flow Properties, described on its website as a stock market investment company, with 12 branches.
"I'll be a billionaire through this company ... I (eventually) want government to lend (sic) money from us," he said earlier this week.
On Thursday, Ngcobo - who also owns seven exotic cars worth about R4.2-million - said: "People may think I'm crazy by spending so much money on a party. It's my birthday and I have a right to celebrate it in the way I wish."
The SA Institute of Stockbrokers (SAIS) said there were strict requirements needed before an individual could trade investors' money on the stock exchange.
"No one can just open up a company and trade ... there are certain criteria that you have to pass. To trade with other people's money, you need to have an SA Stockbroker licence," said Erica Bruce, SAIS spokesman.
Ngcobo insisted that he had all the necessary qualifications. "I've got everything."
Comments by Sonny
Funny how the ANC gets drawn to crime & corruption!
From Sushi, to Flashy cars to Property to Tender fraud!!
BEE really serves the criminals who want to become famous!