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Desperate forex investors destitute

Nov. 15, 2018 2 min read

… five months gone no money, no promised 70% interests MASERU (TmgLive) – A lawyer representing 29 applicants of 43 investors in a forex trading urged the commercial court to hear the case as a matter of urgency because his clients are destitute.

Advocate Motebo Ntabe told Justice Lebohang Molete who was proposing the matter to be heard in January next year that the applicants had actually expected their money as far back as July. The other 14 applicants are represented by Advocate Ntjelo Hlalele. The investors took the matter to court in order to draw off their capital investment plus the promised interest from Simplified Forex (Pty) Ltd.

The applicants appeal to the commercial court to order the forex company to pay total sum of their capital together with any accrued interest at the rate of 70% per month by the date of finalization of the matter in court. They claim the approximate cumulative amount of M2 Million from applicants became due and payable by August. The respondents are the forex company and its directors; Khotso Mahonko and Realeboha Mosola.

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The court heard that the applicants invested their monies with Forex Trading Business with the promise that at the end of the month of deposit, they would reap 70% interest and get their capital back. The forex business would in turn invest such public funds into Simplified Trading Business from which a turnover of 70% profit would be earned. According to court papers, it turned out that Simplified Forex was not a recognised business entity in Lesotho and as such did not have the necessary business account, prompting each of the applicants to pay out capital investments into the personal accounts of its directors.

The court papers indicated that one Reitumetse Tṧooane invested M30 000 into Mahonko’s account sometime in July with the understanding that her investment would last for a month, at the end of which she was to get the supposed 70% interest (M21 000) together with her capital (M30 000). It was revealed that different investors deposited different amounts of monies; some invested M100 000 with a hope for M70 000 interest, some M40 000 with expected interest of M28 000 and M20 000 with promised interest of M14 000.

While awaiting their harvest, the investors were informed that the forex business was allegedly unable to pay their monies as agreed. They were then told that they were to be paid their capital plus 20% interest as opposed to the agreed 70%. The reason being that the business had made a loss. Appearing on behalf of the respondents, Advocate Zwalake Mda told the court that as lawyers they have met to discuss the way forward in resolving the matter. He said the discussions were very profound and there were issues they had to discuss among themselves.The court finally adjourned the matter to December 13.

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