Durban’s youngest “millionaire” Jabulani Ngcobo has no qualms about being investigated by the police and the SA Reserve Bank – and he has branded his critics racists and vowed to splurge more millions to promote his business.
The Police Commercial Crimes Unit and the Reserve Bank confirmed this week that they had begun investigations into Ngcobo’s wealth.
“We have a police inquiry against him, but it’s not a case docket yet,” said an SAPS Commercial Crimes Unit officer who asked not to be named.
“At this stage, we know he has investment companies. We need to investigate their legitimacy; it’s all embryonic at the moment.”
Ngcobo, 26, made headlines after throwing a R1 million birthday party two weeks ago, where 250 guests enjoyed champagne, caviar, sushi and a spit braai at an upmarket local hotel.
Yesterday, dressed in Roberto Cavalli shoes, Billionaire jeans, a Mondo jacket, Louis Vuitton sunglasses and a matching satchel, Ngcobo said his dream was to become Durban’s youngest dollar millionaire.
“I want to be on the Forbes list. I want to be the biggest donor. I believe in helping others, but I want to be able to donate a million rand or two to those who are needy. I want to make a difference.”
Ngcobo denied that his firm was a pyramid scheme, and said authorities were welcome to probe his operations and business interests.
Ngcobo questioned the scrutiny that has followed him over the past two weeks and said: “If a white man had thrown a party like mine, people would have been saying, ‘Oh, he comes from a good family, he’s living large’, but because it’s me, people are complaining. I’m here to make money, whether people like it or not.
“There are two kinds of education in this world; there is academic education, which is guaranteed that you will always work for someone else for the rest of your life, and there is financial education, which guarantees you financial freedom. That’s what most people don’t understand.
“Some people study for seven years, only to earn R30 000 or R40 000 a month, with no luxury in their lives. That’s not for me.”
Ngcobo, who has only a matric, once worked for Toyota “carrying car doors”, before starting a debt collection company in 2006. He says he later branched into the stock market investment field and started Cash Flow Pro in 2009.
Ngcobo, a father of two, said that since his birthday party, he had received overtures from women declaring their undying love for him.
“But I ignore them, I’m covered in that department.”
He denied leaping out of a giant birthday cake was a publicity gimmick similar to Kenny Kunene’s eating sushi off the bodies of semi-naked women.
“Kenny can’t be my mentor; we’re not in the same fields,” said Ngcobo.
Ngcobo cruises Durban streets in his white BMW M3 and in his birthplace, KwaDabeka, near New Germany, locals call him Cash Flow.
“Cash must flow in abundance… I’m comfortable with my car. I can change it tomorrow and buy a Ferrari, but what for?” he said.
He also laughed off reports that he owned a R2.5m house in New Germany.
“I’m actually insulted by that. Why would I live in a R2.5m house when I work so hard? My clients must live in those kinds of houses. I will be building a house in Zimbali or in Umhlanga, a real house that I will be proud of.”
Ngcobo believes his business rivals were plotting his downfall by spreading rumours about him.
“I’m waiting for anyone who wants to investigate. I’m here to stay. I know our concept, I know our vision. The truth will come out whether this is a pyramid scheme or a core concept.
“I’d really have to be stupid to work so hard and start a company, only to start collecting people’s money and start a pyramid scheme.
“I have so many references where people have done that and got arrested, why would I expose myself by throwing a R1m party and call the media? If I had something to hide, I wouldn’t have had a birthday like mine.”
Ngcobo said his expensive party was money well spent – and he’d do it again.
“I always advertise on national radio – but never got this much exposure. What is a million? I’ve gained valuable business partners through that event. I have no regrets. I would do it again…”
The star-studded party was not the last of his marketing strategies. “I have a few others, but I can’t disclose them. Yes, they will cost money. You must spend money to make money.”
He said Cash Flow Pro had more than 1 500 members and operated by training people on how to trade on the stock market.
“People have the option to link their accounts to ours. The client must open his own account, fund it, and then go to Sars to declare, because we trade offshore, and then get a tax clearance for foreign investment.
“After getting it, he goes to his bank and transfers money from his account to an overseas account in the name of market.com. At no point do they put their money in Cash Flow Pro.
“After linking the account to ours, the client then signs power of attorney, authorising Cash Flow Pro that whenever the client trades, the commission they get is concurrent.
“We act on behalf of clients, with their authority. We never touch their funds, I don’t have access to clients’ accounts.”
Ngcobo said that as far as he was aware, his company did not need to be licensed by the SA Institute of Stockbrokers, as it did not deal directly with people’s money.
However, if investigators were to find anything wrong with his compliance, it would not be deliberate.
“What I know is that I’m not running a pyramid scheme. I’m not saying I’m perfect, but as far as I know I’m straight… if I showed the authorities how we work, I have no doubt they will see nothing wrong.”