Africa-Press – Namibia. ALLEGED investment scam kingpin Michael Amushelelo, who made a barefoot appearance in the Windhoek High Court yesterday, is claiming he is facing criminal charges because he took a political stance against the Swapo-led government.
In an interview with The Namibian after he and a co-accused, Gregory Cloete, appeared in court, Amushelelo said he was being prosecuted because he was politically involved and in 2019 started a political party under the name “Power” to challenge Namibia’s ruling party, Swapo.
Said Amushelelo: “We live in a country where the lions and the hyenas decide which sheep they don’t like, and which sheep to prosecute. So, unfortunately I’m a political sheep that is being prosecuted.”
He also claimed: “This is a well-orchestrated move and it’s a signal being sent by the current government, to say that anyone who dares challenge them, you will be dealt with in whatever form they can find.”
Amushelelo – barefoot while wearing light blue trousers and a crisp white collar shirt – said he was shoeless because he had been selling “everything that I have of value” to raise money for his legal fees, and also to show that he has been stripped of everything he owned.
“The bare feet is to demonstrate to the court that they’ve stripped me off naked, and the bare feet is just the start,” he said. “So, tomorrow when I come without a shirt to court, or without pants, they should realise that they’ve stripped me of everything I have.”
Amushelelo (31), Cloete (33) and four close corporations, a company and a trust controlled by Amushelelo are accused of having operated a Ponzi scheme, in which money was solicited from investors who were lured by promises of high returns on their investments, from September 2018 to October 2019.
The state is alleging that the money which investors entrusted to Amushelelo and Cloete, believing their funds were to be traded in foreign exchange markets, was not invested and that later investors’ money was used to pay back earlier ones’ funds.
Investors were allegedly attracted with promises that an investment of N$5 000 would earn 50% interest after two to four months. An investment of N$2 500 for a period of eight months was supposed to earn investors a pay-out of N$12 654,25 after eight months.
Investors allegedly paid a total amount of about N$14,7 million to Amushelelo and Cloete in 348 individual transactions.
According to the state, Amushelelo and Cloete had no independent income reflected in the bank accounts through which investors’ money was channelled.
The two men are alleged to have bought several cars – including two Mercedes-Benzes, two BMWs, an Audi and a Land Rover – and used money received from investors to pay for the insurance of the vehicles.
They are jointly charged with 348 counts of fraud, alternatively theft by false pretences, single charges of money laundering, racketeering, conducting an unauthorised banking business, and conducting a Ponzi scheme, which is a contravention of the Banking Institutions Act, four counts of fraudulent tax evasion, and four charges of failing to pay tax.
Amushelelo is further individually charged with counts of fraud (tax evasion) and failing to pay tax, and an additional charge of fraud. Together with some of his close corporations, a company and a trust controlled by him, he is also charged with additional counts of fraud (tax evasion) and failing to pay tax.
Amushelelo is facing 365 charges in total, while Cloete is due to be prosecuted on 360 charges.
During their court appearance before judge Naomi Shivute yesterday, the judge said due to ethical reasons she would not be able to hear their case. Shivute said the matter was being assigned to judge Claudia Claasen instead.
Amushelelo and Cloete, who are represented by defence lawyer Kadhila Amoomo, are due to make their first appearance before Claasen on 29 March.
They remain free on bail of N$35 000 each.
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