South African Principal Forced to Flee After Falling Victim to Ponzi Scheme

A dedicated school principal from eNdwedwe, near Verulam in KwaZulu-Natal, has been compelled to abandon her career and escape her hometown due to mounting threats from loan sharks. Nomaswazi Nkambule, the principal in question, lost a staggering R123,000 in a fraudulent Ponzi scheme dubbed the Nelson Mandela R5 Coin Wealth.

The scheme, which falsely invoked the name of the revered former president, targeted unsuspecting professionals, including teachers, nurses, and police officers. It promised exorbitant monthly returns of up to R3 million, but instead left a trail of financial ruin and despair.

Teachers, Nurses, and Police Officers Targeted

Nkambule was one of many who fell prey to the scheme, which was heavily promoted in Verulam, a small town outside Durban. She recounted her harrowing experience to Sunday World, explaining how she was lured into the scam by a trusted friend, a police station commander.

“I’m a devoted Christian; I’ve never gambled in my life. But when he told me about it, I didn’t hesitate. I thought it was a legitimate investment, so I joined,” Nkambule said. In a desperate bid to secure a better future, she borrowed R80,000 from two loan sharks and added R35,000 from her savings, hoping to turn it into R786,000 within two months.

Promises of Wealth Turn to Despair

The scheme offered various investment portfolios, and Nkambule chose the double platinum option, which guaranteed substantial returns. However, the promises proved to be empty. The scheme collapsed, leaving her and many others in dire straits. Nkambule had to quit her job prematurely at 51 to access her pension and sold her car to pay off some of her debts. “I was terrified. And my health drastically deteriorated,” she said, adding that those she owed money to wanted her dead.

Devastating Consequences

The impact of the scheme was far-reaching. Several victims reportedly took their own lives after losing their investments. A police officer named Sizwe, also a victim, revealed that numerous colleagues had lost significant amounts of money. “Some do not want to come out because it’s an embarrassing situation. A police officer falling prey to scammers – how do you explain it?” he said. Despite the humiliation, Sizwe assured that the authorities were pursuing the perpetrators, who sold R5 coins with Mandela’s face, falsely claiming they would yield R25,000 per coin.

Official Investigation

KwaZulu-Natal police spokesperson Robert Netshiunda confirmed that a case of fraud and potential money laundering was under investigation. “The matter was reported in Verulam. For now, there are no arrests, and there is an ongoing investigation,” he stated.

The scheme’s impact extended beyond financial losses. Nozipho Mtshali shared the tragic story of her aunt, Hlengiwe Ngwane, a nurse who died in her sleep after learning the scheme had vanished with her money. “It’s very painful for the family. We had to beg her to come back home,” Mtshali said, describing how Ngwane locked herself in her room for days before being found dead. Ngwane had planned to start a salon with her investment returns.

Conclusion

The Nelson Mandela R5 Coin Wealth scheme has left a wake of destruction in its path, affecting the lives of countless professionals in KwaZulu-Natal. As authorities continue their investigation, the victims and their families grapple with the emotional and financial toll of this devastating fraud.

Source: Sunday World