'Savings club' has been referred to police and regulatory authorities.
An investigation into United African Stokvel has found that it never invested the funds it solicited from consumers, despite promising high and unrealistic returns, according to the Financial Sector Conduct Authority (FSCA).
FSCA has now referred the matter to the police, prudential authority at the Reserve Bank and the National Consumer Commission.
United African Stokvel (UAS) claims on its social media pages that it is a digital stokvel that invests clients' funds in property and telecommunications. It says the returns from these investments are used to pay investors.
However, according to FSCA, there were various complaints from clients that although they were promised returns, they did not receive them. This led to FSCA warning consumers in July last year to be cautious when conducting any finance-related business with UAS.
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