Following the recent controversy regarding public property investment company, Amaanat, where scores of investors, mainly Muslims, including widows and pensioners demanded back their money, but were met with deaf ears, another so called Shariah Investment Company is in hot waters and has caused panic amongst many of it’s investors, including locals.
This follows an investment scheme, Al Mabroor, informing their investors earlier this month that they have halted the paying out of the capital amount with profits for those wanting their returns. Many of the investors, all Muslims, including widows and pensioners have received this news with shock, telling the Laudium Sun that their trust in Al Mabroor to manage their investments has all but failed. Although Al Mabroor is believed to have run the scheme according to a partnership, questions are now being asked as to how did they provide returns at almost the exact amount each and every month. One of the investors, from Centurion, who spoke to the Laudium Sun on condition of anonymity said, “Shariah investments are for profit and loss.
So during the years Al Mabroor indicated that they suffered losses due to drought, foot and mouth disease and there was not enough demand for stock, thus the returns would axiomatically have to be less. However during these times, the same profits were paid, and therefore it seems to me that they were running a ponzi scheme. I have reason to believe that investors having written to Al Mabroor to enquire from them as to how did they calculate the profit share but they failed to respond.” Al Mabroor started of as an investment company offering Shariah compliant returns of 15/16% every quarter for a R25 000 investment. Over the years they broadened the scope into fuel, hospital investments and macadamia farming and are managing assets of around a whopping R2,6 billion, having about 10,000 investors.
New Developments
There has been an outcry from certain of the investors of Al Mabroor following the High Court in the Western Cape this month placing Al Mabroor under ‘Supervision’ and confirming the appointment of two interim BRPs, Zaheer Cassim and Sean Christenson, who were apparently nominated by agreement between Al Mabroor’s attorneys and Zaheera Hoosen attorneys (intervention party). Some of the investors have alleged that the intervention party agreed to allow Al Mabroor, who apparently collapsed the investment scheme, to nominate its own BRP, saying it was not entitled to do so through a court process and have questioned the motive behind such an arrangement. It has also been alleged that a negotiation at Court between Al Mabroor and Hoosens attorneys resulted in the appointment of the BRPs. Al Mabroor is believed to have communicated with the initial applicants attorney to appoint Zaheer Cassim as he is apparently seen to be ‘friendlier’ than other BRPs who some of the other investors wanted, such as Mahier Tayob of Tayfin. To add to the controversy around the appointments of the present BRPs, during an interview with a board member Yusuf Badat on Radio Islam on February 19, he stated that “there will be a cohesive relationship between the board and the BRPs”.
He further stated that “we are quite confident that a guy like Zaheer, Alhamdulilah can be spoken to and those are the kinds of discussions that will be happening behind the scenes.”This seemingly evidences the fact that the reason an agreement was reached with Hoosens attorneys and Al Mabroor was to protect the Board. Currently the interim BRPs are appointed subject to ratification at the 1st creditors meeting. It is believed that some of the investors may have had inside information of Al Mabroor’s financial woes as they were paid out in full just prior to the court order. This also follows an individual investor who allegedly effectively caused the ‘run on the investment’ by circulating a voice note and who has since been paid a substantial amount of money by Al Mabroor. Allegations have also surfaced that Al Mabroor was running a Ponzi Scheme, as it is alleged that a certain Wian Smit who had run the operations for Al Mabroor had 57 companies. It is further alleged that the concept he created was to invest money, provide paper based great returns, advised investors to leave the profits in the scheme to continue to grow and exponential profits. It is thus believed that an investor never saw his or her profits as these were simply paper based entries. The Laudium Sun understands that at least 8 investors have requested Mahier Tayob from Tayfin to assist them in recovering their monies invested. They have asked that he through his expertise in forensics, ensure that he tracks and recovers any payments made through conduit companies and investigate, if there was any mismanagement by Al Mabroor and also if the scheme was a Ponzi scheme.
Al Mabroor have asked Mahier Tayob of Tayfin to do a forensics investigation into the financial affairs of Al Mabroor.
Should Mahier prove that Al Mabroor carried out a Ponzi scheme, then it is believed that whatever payments were made to investors recently can be recalled so that a fair amongst all investors can be made with no preference given to any of the investors, big or small. There are also allegations of undeclared cash being put into the fund and Al Mabroor cleaning same by paying out profits and capital to investors.
An investor told the Laudium Sun, “Due to the scheme being such a large scheme, many of us investors believe that a forensic audit should first be carried out. This audit obviously will have ramifications for the Directors of Al Mabroor and therefore they seemingly preferred to reach a mutual agreement with the intervention party’s attorney (Hoosens attorney) to appoint friendly BRPs as opposed to those with the likes of Mahier Tayob, who would expose the truth.” The Laudium Sun understands that Al Mabroor opposed a business rescue application by 8 Applicants nominating Mahier Tayob as the BRP on the basis that it had entered into an en commandante partnership with investors. Meanwhile the FSCA has advised that Al Mabroor agri is not licensed as a financial services provider.
* The Laudium Sun tried contacting Zaheer Cassim for comment but without success. A WhatsApp message was sent to him to comment on his appointment and whether he would investigate if Al Mabroor was running as a Ponzi Sceme. However, even then, no response was received from him.
I am one of the of the investors in the Al Mabroor Agri. So is my wife.
Just before the moratorium, AlMabroor transferred funds to the hospital fund of several investors. I would like Mahir Tayob to investigate and rectify this matter.