Livestock Wealth founder and CEO Ntuthuko Shezi. Image: SAB Foundation
Several investors in Livestock Wealth have contacted Moneyweb to complain that they are not getting their money back since the publication of an article that the Financial Sector Conduct Authority (FSCA) is investigating the investment scheme.
At that time, in June 2024, Livestock Wealth CEO Ntuthuko Shezi came out with guns blazing, publishing a list of email messages between the FSCA and Livestock Wealth on his webpage to say the FSCA previously stated that the crowdfarming platform does not need to register as a financial services provider.
However, recent disclosures raise questions around whether all the cows and macadamia trees are accounted for.
An investor sent an email from New Zealand, asking if anybody knows what is going on at Livestock Wealth.
“After initially being good and legit, it seems like things have turned south there,” he wrote.
“I submitted a withdrawal request in April 2024 and it still has not been processed until now [27 November].
“If you have a look, many are having similar issues on Google reviews. It has all the classical markings of a pyramid scheme,” the investor complained, sending a screenshot of complaints.
Source: Captured from Google reviews
The investor sent copies of his Livestock Wealth “wallet”, which shows a cash balance of R12 105 that he is struggling to withdraw and promised returns for an investment in two macadamia trees of R7 260, due within months. He is worried the money is lost.
ALSO READ: Livestock Wealth: financial regulator warns public to be cautious
Members of a larger stokvel have bigger problems because they are owed nearly R140 000, and the money has been due for months.
“This is Siza Ziphethe, chairman of Ngqoda Stockvel.
“We are a group of primary school former schoolmates that have been contributing money for 5 years and investing it in different entities,” he wrote.
“In 2022, we invested just over R100 000 with Livestock Wealth. We have been reinvesting our profits with them ever since and had planned to withdraw in March 2024.
“Around September 2023 we authorized Livestock Wealth to reinvest our money for the final 6 months. We noticed around April that the money was never invested and I sent an enquiry and asked that we withdraw the balance from their platform.
“Instead of doing that, they sent us notifications that they have reinvested the money and we will be able to withdraw in October. In October we sent a withdrawal instruction and they said they will pay out on 4 November. It never happened,” says Ziphethe.
“I went to their offices and they gave me a letter committing to pay R37 000 by 15 November and R133 000 on 8 December. No payment was made and now they are giving us the run around.
“I write to you seeing you wrote an article on them and their issues with FSCA and hoping you can help expose them.”
ALSO READ: Investors in Livestock Wealth face delay as FSCA reviews investment model
Shezi and his friends at Livestock Wealth are suddenly quiet.
Usually enthusiastic to talk to the media, Shezi replied to questions only by saying that they are still waiting for the FSCA.
“We are still waiting from the FSCA. They promised finality by Christmas,” he answered in a text message.
The FSCA said it completed its investigation and that the final decision on “enforcement sanctions” can be expected by mid-December.
ALSO READ: ‘You want to die?’: Members open up about nightmare of investing in United African Stokvel
Yageshree Moodley asked if Moneyweb has any further information on Livestock Wealth’s regulatory and financial status.
“The reason I ask is because I invested in 2020, requested a withdrawal for the first time in March 2024, and still haven’t been paid. I suspect they’re in financial distress and worry that they are still accepting new investments which might be poorly managed, like mine.
“I already submitted an FSCA Complaint/Enquiry in July, but haven’t heard back,” she writes.
It seems Moodley did her homework well, studying the terms and conditions on Livestock Wealth’s webpage.
“This issue also shows that Livestock Wealth’s trademarked ‘crowdfarming’ strategy is not being implemented fairly. I invested in a particular product, received an asset ID number, and expected to be paid when that asset matured,” writes Moodley.
“However, it has not been paid due to issues on other products – which implies that investor funds are not managed separately per product. Even worse, it may not even be kept separate from the asset manager’s operational account.
“The financial statements are not publicly available, so I’m not sure if they’re solvent. Certainly, they seem to be struggling with cash flow,” she wrote.
“I’ve been hesitant to report it publicly in case it creates a ‘run on the bank’ situation. However, staying silent may cover up potential mismanagement that hurts other investors.”
ALSO READ: Watch out for old and new scams that can cripple your life
Another investor lamented his problems publicly on a user group.
“Once again I’m having challenges with Livestock Wealth regarding payout. I made a withdrawal in December 2023. To this day we haven’t received the money.
“We keep getting the strange excuse that other investors are not making their payments. How that is any of my concern I don’t know,” he wrote.
“I withdrew again on 5th May 2024, still nothing. It’s been 6 months since the first withdrawal in December. Give back our money.”
ALSO READ: FSCA imposed about R943 million in penalties and debarred 156 people
Livestock Wealth states in its terms and conditions that any investment in any of the products is an agreement between the investors (buyers) and the farmer, and that any disagreement or dispute will be between the buyer and the farmer.
“All users understand and expressly agree that a farmer is at all times an independent contractor, and is not an employee of LSW [Livestock Wealth] in any regard. As such, all Farmer Services related issues or features are exclusively the liability of the Farmer, and not of LSW.
“LSW may assist the users in engaging, as their limited intermediary and livestock agent, but ultimately, the Farmer is always responsible and liable to each contracting user it has for any and all of their Farmer Services performed.
“Being the intermediary for any user does not mean that LSW can bind that user to any third-party obligation, nor does it mean that it shall be liable for any responsibility of either the Farmer or the Buyer either to each other, or to any third party,” the conditions state.
The terms and conditions repeat this several times, with several paragraphs printed in bold.
“LSW, its shareholders, employees and partners, accept no liability whatsoever for any loss, whether direct or indirect, consequential or arising from information made available on (or by means of) the website, other users thereon, and/or transactions or actions resulting therefrom,” it states.
“LSW, its shareholders, employees, partners and affiliates accept no liability whatsoever for any costs, expenses, fines or damages, including but not limited to direct or indirect loss or damages, including any economic loss, consequential loss, loss of profits or any form of punitive damages, resulting from the facilitation and offering of the services, and access to, or use of, the website in any manner.”
ALSO READ: FSCA’s Regulatory Actions Report shows impressive numbers of enforcement
Investors do not agree that agreements are concluded directly between the investors “farming” on their cellphone and farmers getting their hands dirty.
The stokvel members say they only dealt with Livestock Wealth and received no details on any farmer or about any specific asset.
Whatever the truth, it does not seem the imminent FSCA report will bring Christmas cheer to Livestock Wealth’s investors.
Meanwhile, the website still solicits new investments.
This article was republished from Moneyweb. Read the original here.
Download our app and read this and other great stories on the move. Available for Android and iOS.
