27 July 2014
The SACP has noted with deep concern and alarm, and condemns in the strongest possible terms the pyramid characteristic car scheme known as R699 - "Six-Nine-Nine". This scheme has been operated for some time in the country by Satinsky 128 (Pty) Ltd. It is estimated that there are over 17 000 victims countrywide. The SACP welcomes and fully supports the investigation into Satinsky by the National Credit Regulator (NCR). However, the SACP believes that more must be done to prevent such deceptive or fraudulent financial schemes. Pre-emptive risk management structures, systems and regulatory interventions must be put in place to detect and combat such unscrupulous financial transactions.
The SACP supports the legal action by the victims of Satinsky`s unscrupulous R699 scheme. We also note reports that a Port Elizabeth based law firm has offered to tackle meritorious cases (i.e. those cases that are above par; obvious; clear-cut) free of charge. However, the SACP cautions against predatory legal interventions, such as those in the case of the Marikana Commission, where lawyers are reportedly destined to make a killing in millions of Rands taking advantage of the victims.
Through its Financial Sector Campaign, the SACP will seek direct interaction with the victims to ensure that they are properly organised and explore appropriate strategies and actions. "The Party is extremely worried that some of the victims are now facing monthly instalments they cannot afford, and are more likely to sink deeper into indebtedness", said SACP General Secretary Comrade Blade Nzimande.
In addition, the SACP calls for a wider inquiry covering the relationship between Satinsky, its alleged Hong Kong based financier called Blue Lake Trading and Promotions which is said to have been involved, as well as the banks in South Africa. Reportedly, Satinsky hoodwinked the victims of his unscrupulous scheme, enticing them with promised reimbursements (rebates) to reduce their monthly loan instalments to a minimum of R699. We are deeply disturbed that Satinsky emerges in this scam as the middleman who facilitates a lucrative lending business on behalf of some of the major banks in South Africa. It is alleged that some of these banks bent lending criteria as outlined in the National Credit Act (NCA) and gave loans to some of the victims who would have otherwise not qualified.
The SACP further calls upon the involved banks to assist the victims of these shenanigans, and for serious action, including criminal charges, against all those involved.
Issued by the SACP
Contact
National Spokesperson:
Alex Mashilo
Mobile: 082 9200 308
Office: 011 339 3621