HOPE FOR 2 000 EMASWATI SCAMMED BY ONTIME

MBABANE - A glimmer of hope has emerged for the over 2 000 emaSwati who fell victim to the Sukke Ontime Investments (Pty) Ltd scam.

The High Court has issued an order under the Prevention of Organised Crime Act (POCA) of 2018 for the forfeiture and sale of several assets belonging to the company’s owner, Machawe Gama. This development offers a potential avenue for recovering a portion of the estimated E34 million siphoned from unsuspecting investors. Among the assets slated for auction are Gama’s luxurious Dalriach mansion in Mbabane, his rural homestead at Lubhuku, a partially-constructed school in his hometown, and a sleek BMW 7 Series. These assets, authorities believe, were acquired through ill-gotten gains stolen from unsuspecting investors.

Fraudulent

A meticulous two-and-a-half-year investigation by the police unveiled the intricate modus operandi of Sukke Ontime Investments. The company lured victims into a fraudulent investment scheme, promising lucrative returns on investments in photocopiers.  Investors were promised monthly rental income, while Sukke Ontime Investments would handle maintenance, servicing and supply of consumables. However, the reality was far from the rosy picture painted by the company. No such photocopiers existed. Instead, the directors, including Gama, orchestrated a sophisticated fraud to enrich themselves at the expense of innocent investors.

The detailed scheme, outlined in the POCA application, paints a disturbing picture of deception and exploitation. The police investigation revealed that Gama had already disposed of many of the assets acquired through fraudulent activities. Detective Mhlonishwa Sibandze, the lead investigator, detailed the arduous process of tracking down the victims and piecing together the puzzle. The investigation uncovered a complex web of financial transactions, highlighting the extent of the fraud. In the application for forfeiture, the court was told that the police and the liquidator discovered that Gama had in fact sold to innocent third parties most of his cars, which were reasonably believed to be proceeds of criminal activities.

The investigations revealed that change of ownership of the cars was long effected. In his affidavit, the investigator of the case, narrated to the court that on December 9, 2021, a suspected case of money laundering was reported at the Manzini Regional Police Headquarters under enquiry file number 740/2021. He submitted that as soon as the case was opened, intensive investigations were conducted by the Financial and Asset Forfeiture Investigations Unit, well-known as Police POCA Unit. 

Liquidation

Sibandze submitted that the police then liaised with the liquidator of Sukke Ontime Investment, Kobla Quashie and requested to view the liquidation file for purposes of furthering their investigations. “Upon perusal of the file, police found out that the victims were over 2 000 in number. Some of them were traced and located. They were interviewed and they confirmed the fraud case perpetrated by the second respondent (Gama) through his company, the first respondent (Sukke Ontime Investments),” submitted the investigator.He highlighted that through the alleged fraud, the victims suffered prejudice ranging between E14 485 to El 500 per machine.

According to the investigator, some of the victims paid cash, while others would do electronic fund transfers to the company’s (first respondent) bank accounts.“All of them would then go to the nearest company’s office, where they would be furnished with receipts, shown their photocopying machines in catalogues, some shown only the serial numbers and made to sign agreement forms. The located victims recorded affidavits with the police,” said Sibandze. He related to the court that as soon as the victims were located and confirmed the case, the police applied for court orders requesting opening of documentation and bank statements of the company.

The bank, according to the investigator, provided the police with the documents, which basically confirmed the fraud allegations as a lot of deposits and swift withdrawals were observed in the bank accounts. He highlighted that, the way in which the accounts disposed of the funds so soon after receipt, appeared unusual and suspicious. He stated that investigations were to the effect that the money paid in cash was taken by Gama. Sibandze said the money would first be received by the office administrator of Sukke Ontime Investments and then taken to Gama.

It is not known though how much cash was taken to Gama as the police largely depended on the investors who were swindled their money for this crucial information. He mentioned that Gama destroyed or removed documentation in his offices, after the investors discovered that they had been scammed around September 2019. According to the police, Gama was now a person of interest to them as he needed to answer, among other charges, to alleged tax evasion and money laundering. He is alleged to have left the country after learning that he was wanted by law enforcers. Investigations by the police revealed that Gama spent some of the money on personal activities.

Activities

Under the personal category relating to all transactions that were not in line with the main business model, a total amount of E5 225 214.29 was allegedly spent by Gama on personal activities that were not in line with photocopier leasing, the main business model of Sukke OnTime Investments. Per the investigations ,one time he spent E44 369.19 to buy at KFC eatery. Since some investors received about E1 500 per month, at least 29 of them could have been paid in one month from the money the director allegedly spent at KFC.

The director, according to the report, spent E9 700 paying for DSTV and an amount of E113 027.34 was allegedly paid for fuel.For car service and motor spares, the director allegedly spent E899 970.54, hardware E167 644.95 and E50 979.75 went into IMM and QSK Investments. The closing balance for this account as at May 7, 2019 was E1 342 006.85. At MGM Investments, another company registered under Gama’s name as the sole director, members of the public deposited a total of E914 991.90 and investors were paid E291 658.11.

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