The South African, Issue 448, 31 January 2012

Page 1

www.thesouthafrican.com

31 January 2012 – 6 February 2012

Issue 448

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HIGH COMMISSIONER INVESTS IN FAKE SCHEME SA ambassador duped into sinking R3 million into 'mine' shares

D

by STAFF REPORTER r Zola Skweyiya, High Commissioner to the UK, is among a number of high profile South Africans who invested millions of rands in a scheme based on what appears to have been gross misrepresentation. According to City Press, the names of people such as Skweyiya, Health Minister Dr Aaron Motsoaledi and businesswoman Wendy Luhabe were allegedly used to lure more people to pump money into Lontoh Coal with a promise of huge returns once it listed on the Hong Kong Stock Exchange. Investors are now accusing Lontoh Coal of duping unsuspecting people into buying shares in the company by claiming it had a shareholding in mining companies. But an investigation by investors and responses from the mining houses this week revealed that Lontoh Coal did not own shares in any mines. Investors also claimed that Lontoh Coal chief executive Tshepo Kgadima promised them a 5% commission if they brought in new investors. But Kgadima insisted the company, which was started in 2006, owned shares in mines, adding that he had a fleet of 70 trucks and employed 140 drivers.

The High Commissioner’s nephew Dr Nkululeko Skweyiya said the veteran politician and his wife, Thuthukile, invested R1.6m, while the Skweyiya family trust pumped R2m into the company. Luhabe put in R160,500 and Motsoaledi R1,000. City Press reported that a list of Lontoh Coal investors showed that more than 90 people invested R11m in the firm. Nkululeko said Kgadima told them he was raising funds to list on the Hong Kong Stock Exchange on 28 November but when the deadline came, he pushed it forward to March 2012. “When Lontoh Coal lists, Dr Skweyiya will never have to work a day in his life. The Skweyiyas have made a 1000% return,” claimed Kgadima. Although Lontoh Coal’s website boasts that it owns coal mines in Zimbabwe and Piet Retief in Mpumalanga, the bosses of these mines said Lontoh Coal did not have a stake in the mines. Rainor Robinson, managing director of Zimbabwe’s Liberation Mining, said there was no relationship between the companies. Aaron Ntuli, director of Piet Retief-based Kwasa Mine, said Lontoh Coal was only a customer of the mine. Kgadima was adamant he owned shares in the mines.

INSIDE:

Year of the monkey, earthworm and giraffe | p8

Colin Macrae talks to Cheri MacNeil of Berlin-based South African SAMA winning folk pop act Dear Reader, who have just released their new album Idealistic Animals to rave reviews abroad.

How to realise your goals for 2012 l p12 In keeping with the theme of making resolutions and reaching goals in 2012, David Anderson from Dale Carnegie Training will speak at the SA Business Club’s first event of the year on 1 February.

SA POWER 100 – 2012: Stephan Pretorius| p13

SPIRIT OF TOGETHERNESS: Ahead of UMOJA’s return to the West End this week we chat to Todd Twala, one of the hit show’s creators. Interview on page 10.

Stephan Pretorius founded and runs Acceleration, a leading provider of consulting systems integration and technology to online marketing.


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