Magaya Launches Another Dubious Investment Venture
Walter Magaya has stirred up a storm with the launch of his new investment venture, Wistmer Investments, amid allegations of fraud and deceit.
Magaya, who has previously been embroiled in various scandals ranging from unproven miracle claims to alleged financial impropriety, is now facing scrutiny over his foray into the mining sector.
Woman Loses House in Magaya Scam
Numerous individuals who engaged in mining agreements with Walter Magaya, leader of Prophetic Healing and Deliverance (PHD) Church, are now pursuing legal action after failing to receive their promised shares, seven years after investing their money.
The disgruntled victims, who were Magaya’s followers, allege that they were lured into the botched mining share deal through Yadah Connect, the investment arm of the PHD Church.
Victims were made to deposit amounts of over US$1 000 and told that the amounts would attract 40% interest after six months.
Now, frustrated by lack of progress and fearing that they have been duped, the victims have enlisted the help of lawyers to recover their money.
NewsDay is in possession of some of the letters of demand written by the victims through their legal representative Makiya and Partners Legal Practitioners.
One of the victims Rumbidzai Dukwara lost US$1 000 and R90 000 in an investment made in 2017.
In a letter of demand, the lawyers said Dukwara made an investment of US$1 000 and R90 000 in 2017 for a period of six months.
Upon the expiry of the six months, their client opted to recoup her investment.
She then approached your offices to effect withdrawal of her funds, but her efforts have not yielded any positive results.
The lawyers gave Yadah Connect up to March 14 to deposit US$1 600 (inclusive of the legal costs) into its account with R90 000 to be paid in cash.
Another victim Percy Makawonesu made a payment of R100 000 into a PHD bank account in South Africa in 2017 and has failed to recoup his money.
Yadah Connect should pay R100 000 in cash and the US$600 legal cost by March 14.
Magaya also allegedly duped homeseekers through a company called Planet Africa in botched stands deals.
Planet Africa offered a housing scheme with varying stand sizes and prices, to be determined after the subdivision of the land.
However, the details of the agreement were shrouded in ambiguity, with a “grey agreement of sale” that failed to specify the exact stand sizes and prices.
Magaya Launches Another Dubious Investment Venture
Deposits for the stands ranged from US$1 000 to US$4 000, with investors required to make monthly payments.
One of the letters dated 7th March 2024 reads:
“We represent Rumbidzai Dukwara, our client. Our client advised that on 22nd September 2016, she made a deposit of US$1 000 being a first payment under receipt number 8177. Again, on 27th September 2016, she made another payment of US$100 under receipt 8234. These payments are for deposit for the purchase of a residential stand from your organisation. An affidavit was signed by our client as confirmation of the deposit payments on condition that your organisation was preparing a memorandum of understanding and the same was to be ready by end of September 2016.
“Client then made follow ups at the end of September 2016 through physical visits at your offices to enquire on the position regarding allocation of the stands as well as to sign the memorandum of understanding as agreed between the parties, but the process has not yielded any positive results.
“Our client advises that you have failed and/or neglected to respond to various reminders telephonically and by our client’s physical demand for refund of the invested funds together with interest thus this account has now been referred to us for collection.”
Planet Africa was given up to March 14 to pay US$1 700 (refund plus US$600 legal fees).
Efforts to get a comment from Magaya were fruitless as his spokesperson Admire Mango was not picking calls and did not respond to messages sent to him by the time of going to print.
Prophet Magaya Accused of Duping Israeli Investors
Magaya was also involved in a fraud scandal after allegedly duping Israeli investors of US$3 million in a botched mining deal.
The case is before the High Court under Case reference No HCH621/23 awaiting trial.
