News24

Two arrested in 'stokvel' scam

2010-07-06 15:18

Cape Town - Two people have been arrested in Khayelitsha for running an illegal "stokvel" scheme, Western Cape police said on Tuesday.

"It is believed that the couple operated a 'stokvel' or money-making scheme without any business certification," Captain Anneke van der Vyver said in a statement.

The couple, aged 42 and 47, operated the scheme from their home in R Block, Khayelitsha.

Police intervened after interviewing people in long queues outside the couple's home.

They complained that they had paid over large amounts of money and were promised substantial growth on their investments.

Beukes said that after the couple's arrested on Monday, about 500 people gathered outside the police station in Khayelitsha.