Pastor denies R138m business is illegal

Published Aug 20, 2015

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Cape Town - Investors and church leaders have come out in support of a holy man accused of running a R138 million pyramid scheme, saying they trust him with their lives.

Colin Davids is the CEO of currency trading company Platinum Forex Group, and a pastor at New Direction Grace Church in Parow Industria.

This is the same church where former Hard Livings gang boss Rashied Staggie is a member, and where he asked his victims for forgiveness in May this year.

The Asset Forfeiture Unit (AFU) seized assets worth R138 million from Platinum Forex last month, after an order granted by the Western Cape High Court.

National Prosecuting Authority (NPA) spokesperson Eric Ntabazalila says according to court papers:

* Instead of investing the monies he collected, Davids used some of the funds for his own benefit, including: two multi-million rand homes in Plattekloof and Hermanus; cars for his wife, Charlyn Anthea Davids; and household expenses from stores such as Woolworths, Checkers and Pick n Pay.

* Platinum Forex is not a public company that is lawfully allowed to provide financial services in terms of the Financial Advisory and Intermediary Services Act, or to conduct business of a bank in terms of the Banks’ Act.

* It is also alleged the company made false promises to members of the public, saying that their so-called investments would yield interest returns of between 48 percent and 84 percent. On its Facebook page, Platinum Forex boasts it can “turn R3 million into R30 million in 30 days”.

* It is suspected that the company used some of the funds received from investors to pay other members.

Davids declined to comment, but denied the allegations on Facebook, where he has tried to reassure investors.

In a post on August 7, he wrote: “Today our Auditors and Accounting firm proved from source records, bank records and trade statements that Platinum Forex Group trades profitably, that we are not a Ponzi scheme, that none of our clients lost money, that all our funds are safe with our bankers and brokers. That we have so much money that we should be a bank.

“We are very close to put this challenging episode behind us and see to the wellbeing and wishes of our clients. We will not entertain further discussions here [for obvious legal reasons].”

A pastor at New Direction Grace Church, Peter Barnes, said some of the church’s property was also confiscated.

Barnes admitted: “The church was raided. They came here and took the files and computers because they thought the church people were being used as soft targets.

“But we never used the pulpit to market Platinum Forex.

“There are very few members of the church who are investors and they heard about the company outside the church.”

Cape Flats preacher Reverend Oscar Bougardt has also come out to defend Davids.

Bougardt, who is not one of the investors, said that he and Davids are “colleagues in the ministry”.

“I don’t see it as a Ponzi scheme when no one has been arrested. Platinum Forex is a legitimate business,” said Bougardt.

“[The story] is being taken out of proportion.

“The investors aren’t even worried.

“Colin Davids is an honourable man, a man of integrity, and he is doing his best to support his community.

A 53-year-old Bellville-South woman said she trusts Platinum Forex “with my life”.

“I’ve been with them for two years,” she said.

“A friend told us about them and we went to their office for a consultation.

“We lend the money to them and what they do with it is their problem.

“They pay us back with interest at the end of each month.

“So far we have never had a problem. I trust them with my life.”

The NPA has not yet brought charges against the pastor.

Ntabazalila said that Davids is still under police investigation and that police are analysing the evidence obtained from his business premises.

After this analysis has been completed, the prosecution could formulate a charge sheet in order for his arrest to be done.

Daily Voice

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