By Peta Krost and Khanyisile Nkosi
Miracle 2000 mastermind Sibusiso Radebe was said to be raking in R3-million a day in his get-rich-quick scheme that tantalised thousands of money-hungry people around the country. This is what National Director of Public Prosecutions Bulelani Ngcuka's spokesperson Sipho Ngwema claimed he was told by Radebe's wife this week.
"He was spending big, paying for overseas holidays for friends and buying cars," Ngwema said. "His cupboards were full of Italian designer gear that he had not yet worn - they still had their price tags on. He only spent in cash, and he even paid cash for his house."
Radebe's neighbourhood also scored from his operation, which began in January, as neighbours provided their homes as guest houses and opened food outlets for the hundreds of folk who came from out of town to "invest" in Miracle 2000.
People would wait up to three days to get into Radebe's home to hand over their money.
Despite the millions of rands being kept in Radebe's Spruitview house, Ngwema was amazed that he "had no security at all".
But this life of luxury came to a grinding halt on Wednesday when the elite Scorpions crime-busting unit arrested Radebe, 39, and raided his "business", seizing more than R14-million in cash that was stashed in his East Rand home.
On Friday, more than 1 000 people held hands outside the Germiston magistrate's court and prayed for Radebe's release.
Ngwema said his unit believed thousands of people handed over what may have been their life's savings in the hope of making 200 percent profit.
While the unit could not give them all their money back, if the court was to make such an order, "we will work out a way, with the Reserve Bank, to make sure these people got a portion of what is left", Ngwema added.
He said investigators were looking carefully into the mechanism of the scheme and hoping to find out exactly who had invested what, and how much remained. "One of the biggest problems is that Radebe had been spending big."
Ngwema said Ngcuka was alerted to the scheme by members of the public and the Reserve Bank, and moved into action.
"We had to decide, knowing people were enjoying the fruits of this scheme, that we could either wait and let them suffer, or take a difficult decision to stop it in their best interests."
But not even Radebe's appearance in the Germiston magistrate's court on Friday could convince his trusting investors that he allegedly was operating illegally.
It is said that each paid him R350, of which R50 was a registration fee. He guaranteed a 200 percent profit within 42 days.
Voicing their disappointment about the arrest of their "master", the investors accused the government of promoting poverty in black communities. "He has changed a lot of people's lives. He is a kind man who does not want to see black people suffer," said one man.
"Miracle 2000 is not a pyramid scheme. What Sibusiso has done is what we call black empowerment. None of the investors have complained about not getting their money back. The government failed to come up with a better way to fight poverty. Instead they are treating the man who has made a difference to so many people's lives as a criminal," another investor, who refused to be named, said.
Inside the courtroom, emotional investors, family members and friends held hands and silently prayed as Radebe made his way to the dock. "Sanibonani," (good day) a relaxed and confident Radebe said to those present.
He stood in the dock and listened attentively as he was remanded until July 27 for further investigations. No charges were put to him.
Ngwema said that while investigators were not probing other pyramid schemes right now, they would be soon, as information had been pouring into their office since Radebe's arrest.