Durban - Officials have warned thousands of people in Durban they could lose their money if they deal with consultants appointed privately to run the affairs of Carmol Distributors.
Local church pastors and others encouraged almost 2 500 to invest in the Carmol fuel distribution business. Its operations were suspended in December by a court order, pending an investigation to establish the veracity of claims that there is no product and the business is, in fact, a Ponzi scheme.
Carmol boss Yunus Moolla has contracted Afro RMM Consultancy to handle his affairs.
But the South African Reserve Bank has stressed that Ernst & Young has been officially appointed to audit Carmol’s finances and fears investors could compromise the recovery of their investments by dealing with anyone other than Ernst & Young.
Carmol is still being investigated under the Banks Act.
Among 90 investors who contacted the Sunday Tribune to express concern about their investments, Henry Samuels said he had invested R60 million. Another person who didn’t want to be named put in R340 000. Bradley Moopanar, who invested R140 000, said he had been confident in the business because many lawyers had taken stakes in it.
Investor Selva Pather said his family invested R300 000, adding: “I had no idea this could be a Ponzi scheme. I have friends who invested millions.”
Nosipho Theyise, spokeswoman for the Reserve Bank, is on record as being unable to confirm investors would be able to recover any funds.
Afro RMM has promised to help investors get repaid after their monthly returns from Carmol dried up when the business was frozen.
Carmol was constituted to finance trade in petroleum products – in particular, diesel. It allegedly offered investors returns of 6-8 percent a month.
The operation was suspended and its bank accounts frozen based on a “reasonable suspicion” of it being an “illegal deposit-taking scheme”.
Afro RMM last month asked investors to furnish copies of ID documents, banking details and copies of their contracts. Attached to the letter was another signed by Moolla, appointing Afro RMM to audit Carmol’s finances.
Moolla, who still cannot be reached on his cellphone, is believed to be out of the country, allegedly in Dubai.
The Reserve Bank said Afro RMM’s attempts to deal with Carmol’s assets would be a clear contravention of the court order. “There appears to be no basis for the invitation to submit information to them,” said Theyise.
The Reserve Bank described the letter from Afro RMM as “misleading” and said assertions of its ability to accelerate the repayment of funds should be ignored.
“Carmol is subject to an interim court order that prevents it from disposing of its assets or withdrawing funds from its bank account. If Ernst & Young’s investigation confirms suspicions that the Banks Act was contravened, the unlawfully obtained money will be preserved for repayments,” said Theyise.
Afro RMM forwarded to the Sunday Tribune a letter stating it had a mandate from Carmol to handle the company’s affairs.
A Reserve Bank directive states queries should be directed to Ernst & Young at 011 772 4100.
Sunday Tribune