KEY POINTS
- Two men face fraud charges for defrauding a stokvel of R600,000.
- Stokvel members discovered the fraudulent activity through suspicious transactions.
- The funds were invested in a cryptocurrency scheme that ultimately failed.
Benjamin Mogotsi, 51, and Constance Motaung, 50, appeared in the Rustenburg Magistrate’s Court on charges of stokvel fraud.
The court granted them R5,000 bail each. They face accusations of withdrawing R600,000 from the stokvel’s account and investing it in a failed cryptocurrency scheme.
The case will resume on May 29 for a second appearance.
Stokvels are informal savings clubs where members pool money for collective investment. However, this case turned into a nightmare for the stokvel members.
According to IOL, Mogotsi and Motaung, who had access to the account as signatories, are accused of secretly withdrawing the money without informing other members.
Fraud scheme uncovered by the stokvel’s treasurer
In November 2023, the stokvel’s treasurer noticed irregular activity in the bank account. He alerted other members about the suspicious withdrawals.
After reviewing the account records, the members discovered that someone had withdrawn large amounts of money without their consent.
Further investigation showed that the accused used the stolen funds for a cryptocurrency investment, which ultimately failed and left the stokvel members with nothing.
The betrayal devastated the members. They had trusted the accused with their hard-earned money. The stokvel’s secretary reported the case to the police, triggering an official investigation.
The Provincial Commercial Crime Investigation Unit then took over the probe. They carefully examined the financial transactions and gathered evidence to support the fraud charges.
Investigation leads to arrests and further legal proceedings
Following investigations, the case was handed to the Director of Public Prosecution (DPP), who issued a warrant of arrest for the suspects.
Acting Provincial Commissioner of North West, Major General Patrick Asaneng, welcomed the arrests. He praised the investigators and acknowledged the cooperation of all involved in the case.
The investigation continues as authorities prepare for the next court appearance on May 29, with hopes for justice from the community.
