Investors who invested in the troubled company RNK Trading and its South African representative network NTTeam are blaming the radio station Ukhozi FM for the multi-million rand losses incurred after the operation ceased.
These investors accused the SABC radio station of lending legitimacy to what they consider a Ponzi scheme, as the station allowed RNK NTTeam to advertise and promote its business on air. This scheme reportedly attracted around 30,000 traders who regularly monitored their investments, trading, and 'stock purchases' at 13:00 and 17:00 until the operation collapsed.
Some victims claim to have invested R500,000 or more. The business model resembled multi-level marketing, where existing traders recruited new participants, and it became popular in towns and settlements across KwaZulu-Natal. Many representatives of this scheme traveled throughout the province, recruiting new members dressed in RNK NTTeam branded clothing.
Despite the scheme collapsing several months ago, some investors maintain hope for its revival and the return of their investments with interest, citing previous 'glitches'. The anger of the investors towards Ukhozi FM stems from the station's decision to broadcast RNK NTTeam's advertisements and promotional materials. Their frustration culminated in a protest at SABC studios in KwaZulu-Natal last weekend.
The protesters accused Ukhozi FM of recklessness for giving airtime to a company that, in their view, misled listeners. Security personnel and South African Police members intervened to disperse the angry crowd, which demanded answers from the station's management.
Nomaswazi Ngcongo, who invested R100,000, stated that she learned about the scheme through Ukhozi FM and believed the station's involvement implied the business was legitimate. She said: 'We heard about the Ponzi scheme on the radio. We believed that if something is advertised on Ukhozi FM, it is true; so we invested our last money.' Ngcongo expressed bewilderment that the station allowed its listeners to encounter what she considered a fraudulent investment operation.
Zwakle Gumede, who invested R50,000, noted that the radio advertising convinced him he was dealing with a legitimate trading opportunity. He stated that he would continue to protest near the station until investors received answers from its management, accusing Ukhozi FM of playing a significant role in attracting people to the scheme.
The operation attracted investors from outside South Africa, including Eswatini, while RNK NTTeam had offices in several parts of KwaZulu-Natal. Its collapse also left some employees jobless. Reports of growing anger among investors have emerged; some reports claim that the home of a person associated with RNK NTTeam was set on fire.
On social media, many complaints were directed at the alleged founder of the operation, with some investors accusing him of being dismissive when asked about the future of the business and when they would get their money back. The first signs of trouble reportedly appeared in July when investors did not receive expected payments on July 15th. The payment date was subsequently postponed to July 31st, causing panic among investors.
Sinotile Jiyane shared: 'I told myself I would withdraw R10,000 to help at home because of a loved one's loss, but that didn't happen.' There are also reports that some RNK recruiters launched a new 'investment scheme', encouraging former participants to leave the past behind and join a new venture.
Attempts to get comments from RNK and NTTeam were unsuccessful. SABC also did not respond to the questions sent to it. This is not the first time that SABC, the country's public broadcaster, has been involved in a dubious get-rich-quick scheme. On June 29, 2022, it terminated the contract with gospel music lead Sibosiso Buthelezi, who was linked to a private investment project called Abombuso Investment, also known as Abombuso Poultry.
This scheme promised investors high returns, sometimes 100%, from selling chickens and eggs over several months. Buthelezi's contract was terminated following growing public pressure, clashes between investors and the SABC presenter, and concerns over reputational damage to the broadcaster. He allegedly blurred the line between his private business dealings and his relationship with SABC as an independent contractor, forcing the broadcaster to distance itself from his private activities.
Despite this history, the station continued to broadcast RNK NTTeam advertisements even after widespread early warnings from people expressing concerns that it resembled a Ponzi scheme. A petition calling for accountability was launched on Change.org by Sello Jerry Makhalananya. Makhalananya stated that he invested his hard-earned savings, believing RNK/NTT was a legitimate operation. He said: 'Trusting the legitimacy of RNK/NTT, I invested all my hard-earned savings, confident that I was doing the right thing for myself and my family.' He added that discovering the disappearance of his savings was devastating: 'It's not just about the money; it's about being taken for a fool, my dreams are shattered, and I am facing financial uncertainty I wasn't prepared for.'
He called on RNK/NTT to take responsibility for what he described as deceptive practices and false promises, and to return the money to the investors. Meanwhile, the Financial Sector Conduct Authority (FSCA) warns consumers about individuals posing as regulators and their staff offering to help victims recover money supposedly lost through RNK NTTeam. The regulator stated: 'The FSCA has no connection to this organization and will never ask for your money to help with claims or inquiries.'
The FSCA regularly warns consumers about unregistered organizations and individuals offering investment or trading opportunities. It advises the public to check whether a financial service provider is authorized before handing over money and to be wary of investment offers promising unrealistic returns. The regulator highlighted several signs of potential investment fraud, including: inflated returns, offers made via social media, demands for upfront payments, requests for extra money to recover investments, pressure demanding immediate action, and vague information about the investment product. The public can check if a person or institution is authorized as a financial service provider by contacting the FSCA on the toll-free number 0800 110 443 or using its online FSP checker service. Suspicious activity can also be reported to the FSCA ethics and fraud hotline at 0800 313 626.