Durban - A Durban pensioner who “invested” R100 000 in Carmol Distributors said the company’s legal woes had placed him in a terrible financial predicament.
The man, who asked not to be named, said he had used a portion of his pension and refinanced his house, the bond for which had been close to being paid off, to fund his investment.
The 66-year-old was to receive a 7% return every month and his capital back after a year.
The company, run by Fathima Carawan and her husband, Yunus Goolam Hoosen Moolla, is in the process of being wound up by the registrar of banks in the South Gauteng High Court.
It is believed the couple took deposits from thousands of investors - many of them working class Durban families - in a R1 billion petroleum trading “scheme”.
Registrar Rene van Wyk said in an affidavit that investigations into the couple’s activities began in November 2013 when Carmol’s bankers, Standard Bank, observed “suspicious transactions” on its account.
Van Wyk said Ernst and Young Advisory Services were appointed as “inspectors” to further investigate the company.
“Whilst the Carmol Respondents (Carawan and Moolla) purported to be engaged in the business of selling and distributing petroleum and or diesel products, a regular feature of the Carmol Business was in fact the carrying on of an unlawful deposit taking scheme; and the Carmol respondents had as a result obtained money by carrying on the business of a bank without being registered to do so,” she said.
On Thursday the pensioner told the Daily News how, after only three months, the deposits stopped.
“At first I thought it was just delayed, banks can do that sometimes. But then I read about the business’s troubles in the paper and I panicked. I was so worried about losing my money. Instead of the comfortable retirement I was trying to secure, I have to use what little pension I get to fulfil my obligation to the bank for the bond,” he said.
He had been referred to Moolla by an acquaintance three years ago.
“I met him but I was not totally sold on investing. I was reluctant and felt uneasy.”
This, he said, was because there were aspects of the business Moolla refused to disclose. However, the pensioner ignored these alarm bells and invested, convinced by the explanation that Moolla could not divulge too much in case someone “hijacked” his business idea and “coaxed” by the returns other people he knew were enjoying.
“I read in the paper that he was living a life of luxury in Dubai, while I rely on my son to help me with the repayment to the bank. If he (Moolla) has a conscience, it must direct him to pay us. Most of the people I know who invested are also pensioners. We cannot afford to lose so much money. All we wanted was financial security and a comfortable retirement after working all our lives,” he said.
However, he is still hopeful and did not believe this was a “scam” because the business operated for years.
“I am still hopeful, I know KPMG and Ernst and Young are involved, they contacted me requesting some details. I mean if the company was doing wrong, he (Moolla) would have been locked up, right? Also everyone assures me that he has sufficient assets to pay us.”
Despite his confidence, he regrets ever investing, wishing he had heeded the alarm bells which rang when he met Moolla.
“As a pensioner I can’t make ends meet, I just wanted a few more rands, I don’t believe he would snatch our life savings from our hands, if that is so, I may as well have thrown the money down the toilet.”
Daily News