HomeLocal NewsHundreds stranded after pyramid scheme collapse

Hundreds stranded after pyramid scheme collapse

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AT least 100 angry investors yesterday besieged a Bulawayo company for the second consecutive day, demanding their money after a suspected pyramid scheme is said to have collapsed.

Report by Blondie Ndebele

Perfect Shot investments, registered to deal in mining equipment, reportedly ran a pyramid scheme. However, the company failed to pay back interests as promised, triggering the raid by investors.

There was chaos as angry investors tried to push their way into the company’s offices while a security guard pleaded with them to wait for the management to address them.

One of the company officials, who could not be identified, assured the disgruntled investors that they were going to get their money this week as they were still working on something.

“We are facing cash-flow problems, but it is not a permanent problem and by Thursday we would have solved it,” he said, adding that the company will send text messages informing the investors when they can collect their money.

“If you could come back tomorrow we will be able to work out something in an orderly manner. I can’t tell you the exact time to come, but you will be getting the messages by this evening.”

The official said he was waiting for a huge cash injection, which would see the company being able to repay all the investors.This did not seem to appease the agitated investors, who said they had visited the company’s offices on Saturday and were told to return the following day, only to be told to wait for text messages.

“You told us you had a back-up plan if you fail to get the money from whoever was promising you, then what has happened now?” an angry investor shouted back.
The investors left shortly after the address from the Perfect Shot official, but warned that they would return today.

Perfect Shot, represented by managing director Daniel Dukunye, was recently fined
$2 000 for contravening the Banking Act after the Reserve Bank discovered that it was collecting money and deposits from the public unlawfully.

The company is the second pyramid scheme to collapse after Geozing Pawn brokers, which faced similar problems last month.

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