The Pinetown Regional Court has sentenced Nsikayomuzi Goodman Goqo, 40, to eight years in prison for orchestrating a R70 million Ponzi scheme through his company, Ingede Mineral Holdings, between 2009 and 2010.
Operating from Hillcrest, Goqo lured over 4,000 investors with promises of a 30% return on stock market investments within six months. Instead, the scheme collapsed, leaving victims financially devastated.
Lavish Spending Exposed
During the trial, prosecutors revealed that Goqo spent at least R5 million of investor funds on luxury cars while thousands of victims were left bankrupt.
Senior State Prosecutor Advocate Hazel Siraramen, who is also prosecuting former eThekwini mayor Zandile Gumede, urged the court to impose a harsh sentence, highlighting the severe impact on victims.
“The devastating effects which this scheme had on investors were graphically illustrated by evidence of individuals who had been financially ruined and now rely on the generosity of family and others to make ends meet,” Siraramen told the court.
She also accused Goqo of showing “no remorse” and deliberately delaying proceedings.
Failed Attempts to Ease Sentence
Goqo’s friend and former mentor, Malibongwe Matiwane, offered to sell his R1.8 million home in Lion Park to assist, though prosecutors argued the offer was misguided, as Matiwane was not involved in the fraud.
Goqo’s lawyer, Ben Dlamini, argued that his client’s chronic illness, overcrowded prisons, and his responsibilities as a father to a one-year-old child should be considered. He pleaded for alternatives to imprisonment.
Magistrate Rejects Leniency
Magistrate Sphiwe Hlophe acknowledged that illness and changes in legal representation caused some trial delays but insisted Goqo also stalled the case unnecessarily.
On sentencing, Hlophe ruled that:
The R1.8 million offer from Matiwane would not adequately compensate victims.
A fine was inappropriate, given Goqo’s previous fraud conviction in 2007, when he was ordered to pay R8,000.
The minimum sentence of 15 years could be deviated from due to health and family considerations, but imprisonment remained unavoidable.
“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,” Magistrate Hlophe said.
Goqo was sentenced to eight years’ direct imprisonment.
Widespread Financial Ruin
The Ponzi scheme, one of the largest of its kind in South Africa, left many victims bankrupt and reliant on family support. The judgment was welcomed by those who had waited more than a decade for justice.
