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Daniel Nemukuyu Senior Court Reporter
CAPITAL Base Savings and Credit Co-operative Society Ltd — a Mutare based financial institution — has been ordered to pay US$138 000 to 33 people it duped in the controversial pyramid investment scheme that rocked the country last year. The company caused a stir in Mutare after several people fell prey to its pyramid investment facility but did not get returns they were promised.
The residents entered into separate agreements with Capital Base in which they deposited money ranging from US$50 to US$20 000 on the understanding that they will get back their investment with 15 percent interest per month.
Nothing came out of the deal and the company representatives became evasive on payback time.
Criminal proceedings were instituted against some individuals involved in the scam and the 33 victims issued summons at the High Court through their lawyer Mr Caleb Mucheche of Matsikidze and Mucheche law firm.
Justice Esther Muremba recently ruled in favour of the 33 and ordered Capital Base to pay the outstanding money with interest.
“It is ordered that the respondents be and are hereby ordered to pay the applicants, jointly and severally in solidium the one paying the other to be absolved, the total sum of US$138 445, which is owing and long overdue to the applicants.
“The respondents be and are hereby ordered to pay, jointly and severally in solidium the one paying the other to be absolved, interest at the rate of 5 percent per annum on the capital debt from the date of demand to the date of full and final payment,” she said.
“The respondents be and are hereby ordered to pay, jointly and severally in solidium the one paying the other to be absolved, costs of suit on a legal practitioner-client scale.”
Between 2011 and 2013, the 33 victims made cash investments of different amounts with Capital Base but the company did not repay the investors their money neither did it pay them the promised 15 percent interest.
That prompted the investors to engage their lawyers.
Each of the investors is owed between US$200 and US$21 000.
Online Reporter