Residents of Qwaqwa in the Free State who  invested thousands of rands in an unscrupulous stokvel are still waiting for their returns. This despite Tshwaranang Community Stokvel assuring them they would receive their money plus 50% interest after 30 working days.

The maturity date has lapsed and they’re still waiting.

Tebello Letaba resigned as a teacher, and took her pension funds and policies, and invested the money with Tshwaranang Community Stokvel.

“I used my savings, my pension funds, surrendered my children’s education policies and all my investments. I invested it all with Tshwaranang,” says investor Tebello Letaba.

Another investor,  Joseph Tekela, sold his house in Soweto and invested it in the stokvel. He now lives in his parents’ house in Qwaqwa.

Tekela says the stokvel left him poor.

“I owe my child’s tuition fee to the tune of R32 000. She is home and can’t go to school because I am in arrears.”

Financial advisor of the Mohapi Group, , Simon Mohapi, says Tshwaranang Community Stokvel operates like a pyramid scheme.

“Are you saying, if you invested R50 000, your return is R25 000 after 30 days? It is unbelievable. It sounds like a pyramid scheme. It is a push-push (pyramid) type of a situation.”

A senior officials of Tshwaranang Community Stokvel says they are regulated by the Financial Sector Conduct Authority, and will not steal money from their investors.

However, the Financial Sector Conduct Authority says Tshwaranang is not registered with them.

They warned people against investing with this stokvel.