Iuze Mukube
One of the over 70 complainants who were allegedly defrauded of thousands through a Ponzi scheme was referred to as an unfortunate investor.
This is according to Sakaria Megameno Namwandi, through his legal-aid lawyer, Joseph Andreas, last week. The description came during the cross-examination of State witness Maria Kakoto.
Kakoto testified she was introduced by someone to invest a sum of money in an entity, with a promise of maturity after 30 days. After filling out a form, she invested a sum of N$5 000 in Asset Legacy on 17 October 2019, an entity accused alongside Namwandi.
She waited for the day of maturity, which was to be in November, but was informed that the account where she deposited the money was frozen.
The witness later heard that there was a case going on in court about the matter.
She, however, indicated that she did not recall opening a case with the police about it.
It was during cross-examination by Andreas that she was told she was one of the unluckiest investors.
This is because the sum that she invested entered the entity’s account after the account had been frozen by the Bank of Namibia in 2019. Andreas stated his client had no access to that money due to that reason and that the money is with the State, not his client.
Additionally, there have been questions of what happens to the complainant’s money in such circumstances.
A victim must fill in an application form for Exclusion of Interest according to the Prevention of Organised Crime Act (POCA) to enable the persons who invested to get back their money after the case is finalised.
In the circumstance where the money was already used for investment, the State would have to apply its discretion at the end to see if the remaining amount is enough for payment to all the victims.
Namwandi and his entity, Asset Legacy, 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. 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.