Chinese nationals fined R10k for running mashonisa businesses in SA

Two Chinese nationals have been handed a R10,000 fine each for operating unregistered cash loan businesses in the North West province.

The convictions were pronounced by the Atamelang Magistrate’s Court on Monday, 17 July 2023.

According to police reports, the two loaned cash to desperate people and took possession of their SASSA and bank cards, amongst other important documents, as collateral.

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Search and seizure

Police spokesperson, Lieutenant Colonel Tinyiko Mathebula, said police executed search and seizure warrants at two business premises suspected of operating as loan sharks in Setlagole.

“The suspects, Nengbiao Xue, aged 41, and  Xiamei Chen, aged 47, were arrested at their respective establishments for violating Section 133 of the National Credit Act, 2005 (Act No. 34 of 2005).

“During the operation, authorities seized various items, including SASSA cards, bank cards, ID books, and SA Post Office cards, from both locations,” Mathebula said.

He said the accused made their initial court appearance on 10 March 2023.

“Subsequently, on Monday 17 July 2023, they opted for separate plea bargains with the state. The court found both individuals guilty of the charges levelled against them, leading to their conviction and the imposition of a R10,000 fine each.

“The sentence serves as a penalty for their involvement in operating unregistered cash loan businesses, which is a violation of South Africa’s National Credit Act,” Mathebula said.

Bank and SASSA cards as ‘security’

Another illegal moneylender was arrested in May for taking borrowers’ ID books and bank and SASSA cards as ‘security’.

Police confirmed that the suspect had lent out money and charged fees and interest without being registered with the National Credit Regulator (NCR).

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Police spokesperson, Zinzi Hani, issued a reminder to business owners that it was illegal for individuals to loan money without being registered with the regulator as well as to request identity documents and items such as bank cards as security from persons.

“This is illegal according to the National Credit Act and if a person is ever asked for these items, they should immediately refuse and report the business to the police,” Hani said.