Johannesburg - ABSA is in hot water for its lack of action following reports of one of their accounts being used in a pyramid scheme that promised to build houses for the poor at R600.
The Star has seen a letter written by the members of the EFF in Joburg to the bank pleading with it to freeze the accounts of South Jozi, a property development organisation that has been swindling money from the poor with the promise of affordable housing.
The organisation has been exposed for stealing from the poor and robbing them of their dreams of one day having houses but continued to function using an Absa account.
In the letter the EFF said people trusted the idea of getting a house at only R600 because the organisation was using an Absa account.
South Jozi claimed to be working with the Chinese government to build homes for the poor in South Africa.
“Our estimate is that the money that went in and out of the account was more than R10 million which clearly indicates money laundering and the question is then why did Absa not inform the authorities regarding a suspicion of a pyramid scheme.
“Most of our people trusted the bank more in this regard hence we ask the bank to clarify its position,” the EFF said.
The EFF in Joburg said it was approached by community members in some townships who were distraught following the failure of South Jozi to supply the houses that residents were promised.
It was estimated that around 2 000 people were defrauded by South Jozi.
“EFF in ward 128 was approached by members of our community and beneficiaries of a housing project called South Jozi after they suspected there was something wrong with the way the project is moving; it is on this basis that the branch decided to find out what is going on regarding the project.”
The party said preliminary investigations found that one of their members was embroiled in the scam.
According to the EFF, the member has since stepped down from his position as deputy chairperson of the branch.
Despite The Star’s expose of the housing scam, meetings continue being held where people are asked to take out more money in order for them to get houses.
Some consultants of the project had called meetings at the weekend asking those who wish to receive refunds to indicate this and those who wanted houses would continue with the process.
The Star posed a number of questions to Absa, most of which were not answered.
Instead the bank sent this statement: “Absa is investigating the matter and will respond to the affected parties at the appropriate time,” the group said.
Police said they were also investigating.
The Star