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.