Africa-Press – Botswana. Consumer Rights Watchdog has raised alarm over the sufficiency of funds recovered from the fraudulent Ecoplexus pyramid scheme, warning that the more than P30 million seized will fall drastically short of compensating the hundreds of victims defrauded in the massive scam.
This comes as the Bank of Botswana (BoB) accelerates efforts to reimburse victims of a similar scheme — Dafritech — after the High Court ruled that all funds collected illegally by the company be transferred to the central bank for distribution to defrauded depositors.
BoB takes action
In an official communiqué, BoB Head of Communications Dr. Seamogano Mosanako said the bank acted against Dafritech after it emerged the company was engaging in illegal deposit-taking under the guise of a foreign exchange investment platform, using a tiered commission system typical of pyramid schemes. “The High Court ruled in our favour and ordered that the funds be transferred to the bank for distribution to the depositors,” Mosanako said.
Dafritech account holders have since been invited to claim their funds by providing proof of deposits and identification documents to the First National Bank Botswana (FNBB), where the accounts were held.
The scam, described by the BoB as a classic case of advance-fee fraud, involved members of the public being enticed with promises of abnormally high returns on investments, often in foreign exchange and other virtual assets — returns which never materialised.
While some Dafritech victims are now recovering their funds, those caught in the Ecoplexus scam may not be as fortunate.
Grim prospects for victims
Consumer Watchdog founder Richard Harriman told The Botswana Gazette that the prospects for Ecoplexus victims are grim. “Almost all of the money stolen during the Ecoplexus scam is gone forever. The amounts left are just a small portion of the money taken, and I’m not sure the authorities know how to divide it between those who deserve it,” he said. “Also, plenty of the ‘victims’ don’t deserve to get their money back,” Harriman added, suggesting that some knowingly participated in what they should have recognised as a fraudulent scheme.
Illegal
According to BoB’s latest report, the bank launched investigations into Ecoplexus after multiple complaints were received about its pyramid-style operations. The findings confirmed that the company had been operating illegally by taking deposits from the public without the requisite licence.
The report also revealed that five entities tied to the scheme were issued with cease-and-desist orders. Accounts associated with the scam were reported to the Financial Intelligence Agency (FIA) and investigated by the Botswana Police Service. Eventually, the courts ordered that over P32 million in frozen funds be handed over to the Office of the Receiver for management and possible redistribution.
Despite the seizure of this amount, Consumer Watchdog remains adamant it will be insufficient to cover the total losses suffered by victims, with some sources suggesting the total amount swindled was well over P100 million.
Authorities have yet to announce a detailed plan for how the Ecoplexus funds will be distributed, leaving victims in a state of uncertainty.
“We are dealing with a situation where many people may never see their money again,” Harriman said, urging the public to remain vigilant against such schemes and avoid being lured by “get-rich-quick” promises.
For More News And Analysis About Botswana Follow Africa-Press
