A Namibian who allegedly operated a Ponzi scheme and is accused of defrauding 79 persons to the tune of N$4.3 million, is disputing the validity of financial records, including bank statements the State wants to use against him.
Sakaria Megameno Namwandi opposed to certain documents the State wanted to introduce as evidence through his Legal Aid instructed lawyer Joseph Andreas.
Andreas said the records obtained by the prosecution were done using incorrect procedures.
He said section 179(1) B of the Criminal Procedure Act does not give the State carte blanch to get the extremely sensitive financial information of citizens when he cross-examined Jacoline Benade, a State witness who works as a fraud investigator for FNB Namibia.
While the section does allow police officers power to give a written notice to someone that requires that person to attend criminal proceedings in court and produce specific documents and other evidence, it does not authorise any person to obtain sensitive financial information about a person without consent, Andreas told the witness. He asked her if she received such consent from his client, to which she answered in the negative.
Namwandi and his entity are facing 123 charges of fraud, alternatively theft by false pretences; one count of money laundering; one count of racketeering; one count of conducting banking business while not authorised; and one count of conducting a Ponzi scheme.
In addition, he is charged with two counts of tax evasion, and two counts of failure to pay tax. He denied all the charges.
It is alleged that Namwandi was the sole member of Asset Legacy Investment CC. He had the duty to conduct legitimate business on behalf of the entity, and facilitate the reception of legitimate business funds held at various banks.
The State claims that he formulated and operated a Ponzi scheme, in which he, through the entity, advertised two types of investment facilities to members of the public, through face-to-face interactions as well as social media platforms, under the guise that the invested funds would be traded on foreign exchange platforms with a return of 50% within 30 days.
Advocate Constance Moyo is opposing the application. Windhoek High Court Judge Naomi Shivute, who is presiding over the matter, remanded it to tomorrow for continuation of the trial-within-a trial.
-rrouth@nepc.com.na