Johannesburg – The high court has frozen the bank accounts belonging to Women Against Poverty and Hunger (WAPH), a suspected pyramid scheme disguised as grocery stokvel, and its founder Kelebogile Precious Phumo – also known as “Mme Lebo”.
The total preserved in the bank accounts so far is R5 326 865.
The second preservation order against WAPH – a pyramid scheme – comes a few weeks after the high court granted the National Prosecuting Authority (NPA) the first order of R1 535 040.
This amount is held in three bank accounts belonging to WAPH, and one bank account belonging to its founder and promoter, Phumo.
The NCC investigated the conduct of WAPH and found that WAPH carried out multiplication and pyramid schemes disguised as grocery stokvel, thus contravening sections 43(2)(a) and 43(4) of the Consumer Protection Act.
WAPH conducted a pyramid scheme by encouraging participants to recruit more participants for a reward of R1 000.
The matter was referred to the NPA’s Asset Forfeiture Unit, which launched a probe into the matter and sought a preservation order against WAPH and its founder.
Commenting on the matter on Saturday, (5 October 2024), the National Consumer Commission (NCC) said it “welcomes” the second preservation order granted by the Gauteng Division of the High Court of South Africa in favour of the NPA.
The NCC said it investigated the conduct of WAPH and found that WAPH carried out multiplication and pyramid schemes disguised as grocery stokvel, thus contravening sections 43(2)(a) and 43(4) of the Consumer Protection Act.
“WAPH conducted a pyramid scheme by encouraging participants to recruit more participants for a reward of R1 000,” explained the NCC
“By encouraging participants to recruit more participants for a reward of R1 000 and promising unrealistic returns to participants, WAPH operated a pyramid scheme.”
In this regard, the NCC said Section 43(4) of the Consumer Protection Act describes a pyramid scheme as “an arrangement, agreement, practice of scheme if participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants, rather than from the sale of any goods or services”.
The matter was referred to the NPA’s Asset Forfeiture Unit, which sought a court order to freeze the bank accounts of the scheme, the founder, and others.
The NCC said participants of WAPH, mostly women, were encouraged to deposit money into two bank accounts belonging to WAPH, four bank accounts belonging to its founder and promoters, Ms. Kelebogile Precious Phumo, Ms. Itumeleng Thai, Ms. Thulisiwe Midrand Mbambo, Ms. Busisiwe Primrose Horacio, Ms. Nomsa Mbalati, Ms. Nomakhosi Zwane, Ms. Gugu Cele, Ms. Mpho Patsa Mokoena and Ms. Agnes Mofokeng.
On Facebook, WAPH implored “family members” to help it get the bank accounts re-opened by signing a petition.
WAPH posted: “Sign and join the revolution, to have our banks reopened and to continue to touch the lives of the nation – Khanyisile Methula Contact the author of the petition“.
