Mastermind sentenced to eight years for orchestrating R70 million Ponzi scheme

Nsikayomuzi Goodman Goqo, the mastermind behind the Ingede Mineral Holdings Ponzi scheme, has been sentenced to eight years in prison by the Pinetown Regional Court on Friday.

Goqo defrauded thousands of individuals of over R70 million between 2009 and 2010.

Goqo, 40, operated his company from Hillcrest, luring over 4,000 people with the promise of a 30% interest over six months on investments in the stock exchange.

He utilised Ingede Mineral to orchestrate the fraudulent scheme.

During sentencing, Goqo’s friend and former mentor, Malibongwe Matiwane, informed the court that he owns a house on tribal council land in Lion Park, valued at approximately R1.8 million, which he built after purchasing the land for R50,000 from a local chief.

Matiwane offered to sell his house to assist Goqo if needed.

Senior State prosecutor advocate Hazel Siraramen said she did not understand Matiwane’s generosity, given his lack of involvement in the Ponzi scheme.

Siraramen, who is also prosecuting former eThekwini mayor Zandile Gumede’s case, urged the court for a severe sentence for Goqo, highlighting the devastating financial ruin experienced by many victims. 

“The devastating effects which this scheme had on investors were graphically illustrated by the evidence of investors who had been financially ruined and now have to rely on the generosity of family and others to make ends meet,” she said.

Siraramen further revealed that Goqo spent R5 million of investor funds on luxury cars, and reminded the court that Goqo was responsible for the case’s delays.

She asserted: “He had no remorse.”

Goqo’s lawyer, Ben Dlamini, attributed the delays to his client’s illness and requested alternative sentences besides imprisonment.

Dlamini said the prisons were full and there isn't enough budget for prisoners.

Magistrate Sphiwe Hlophe acknowledged that the delays were due to Goqo’s illness and changes in legal representation, but also noted: “I’m aware that you also caused delays when you were not ill.”

Magistrate Hlophe stated that the R1.8 million from Matiwane’s house would be insufficient to reimburse the numerous victims who lost their money.

“It's your friend's house. If the court were to impose a fine, it wouldn’t be punishing you; I’d be punishing your friend. The court needs to punish you for your wrongs,” the magistrate said.

While acknowledging that the minimum sentence for some of Goqo’s more than 4,000 charges is 15 years, Magistrate Hlophe considered Dlamini’s plea for deviation due to Goqo’s chronic diseases and his one-year-old child.

Consequently, the court deviated from the minimum sentence.

Furthermore, Magistrate Hlophe deemed a fine an unsuitable sentence, referencing Goqo’s prior fraud conviction in 2007, for which he was ordered to pay R8,000. 

He concluded: “It appears that such a sentence did not deter you from committing the offences. You have now been convicted of fraud. A court cannot consider a fine again.”

nomonde.zondi@inl.co.za