Painful cry for help from Welkom Yizani investor: Naspers took us for a ride

Posted on:
26 Mar 2018
Category:
Investment, Personal
Posted by:
PBM_Admin
Occupation:
Region:

PBM

Nelisiwe Amanda Mgcina has written a pain stained letter that accuses global media giant, Naspers, of robbing poor black people under the guise of broad based black economic empowerment (BBBEE).

The 27 year old single mother is part of more than 100 000 black people who were sold a freedom dividend promise by Naspers through a vehicle called Welkom Yizani.

More than 100 000 people, many of which are poor black people, emptied their pockets and bought shares in the Welkom Yizani BBBEE scheme that promised a political reparation of sort. The scheme invested in Media24, Nasper’s print media business, has failed its investors. Opening at R10.00 per share in 2006, it has remained trapped at R10.00 and has on occasions dipped below R10.00 which saw investors losing money.

Media24 operates a number of popular print media titles like City Press, Daily Sun, Sunday Sun, Beeld, Rapport and a host of knock and drops and magazines. It also owns some of the biggest online titles in the country like news24, fin24, channel24, travel24, wheel24 and HuffPost South Africa.

Here follows Mgcina’s letter 

Good Day Mam/Sir


I am a 27 year old, single mother to my 8 month old baby. Nelisiwe Amanda Mgcina is my name.

I currently reside in the township of Vosloorus with my baby and my mother who is on pension. I bought the Welkom Yizani shares in 2006 when they were first launched. I was 16 years old and still staying with both my parents at home.

Having thought of the difficult financial conditions we were faced with at home I then decided to take my lunch money, that I had been sparing for some weeks, to go and invest in these shares hoping that one day this would change my fate and better my future and that of the people that I care for. I was given the impression that they were aimed at the empowerment of disadvantaged people (namely black people). Sadly to my disappointment, Media 24, the company in which Welkom Yizani is invested, appears to be the only party that benefited from the whole establishment. We the disadvantaged people were left in worse condition than the one we were in before this whole scheme started.

Sasol Inzalo investors come together to seek justice

The R10.00 trap

1)      We bought for R10 per share. 14.6 million of those shares were issued and fully subscribed for.

2)       The scheme has paid some dividend but I have not seen a penny from this dividend. This might be because my shareholder details were printed incorrectly from the beginning to date (regardless of my attempts of calling their helpdesk requesting an amendment of my details) from my name, surname to even my I.D number. I wonder as to how many other shareholders are having the same bad experiencing as I am. Considering that most shareholders were either elderly, or very young (as in my case), or not properly educated about such matters most of us did not know or still do not know how to get justice on this.

3)      To make matters worse, Welkom Yizani share price has not gained value since the start of this scheme. As of September 2006 the shares were sold at R10.00 each. On the 15th of March 2018 they were still sitting at R10 each as stated on their online trading site.

4)      On the other hand Media 24 grew significantly at our expense as such they introduced new titles of newspapers, magazines and online publications following the Welkom Yizani scheme.

I have written this e-mail as a cry for help and guidance in my quest to get justice for the seemingly ruthless, big shark called Media24/Naspers faced as Welkom Yizani. I would like to see the company reimbursing my money but having accounted for the gains and returns received by both companies since 2006 till 2018 as a result of my investment.

Regards

N.A Mgcina

In the interest of fairness ProBonoMatters sent out a right of reply alert to Naspers/Media24 at the time of publishing this post. We will publish their response here if and when it comes.

Welkom Yizani BEE scheme leaves multitudes in tears

30 Responses

  1. Sibusiso

    Sad. The trappings of capitalism. If poor people were misled or deceived into buying these shares, then they have a case.

    • Zinhle Dlamini

      It was a day light robbery that needs to be investigated. I lost ma money investing in them in 2006

  2. Pingback: Painful cry for help from Welkom Yizani investor: Naspers took us for a ride | UJUH

  3. Pingback: People call for radical options to rectify failing BBBEE deals | UJUH

  4. Pingback: Undercover: Inside the EFF's bid to take on global security firm G4S | UJUH

  5. Pule Maleho

    We both bought shares in 2006 myself and my parents. Up to today there is nothing received from Welkom Yizani shares.

    • Anele

      me and my fiance also bought shares from yizani on 2006 but we havent received anything since then

  6. ambrose Rakgoadi

    Welkom/yizani has not send us shareholders any communication for the past 12 months or so to notify us about share holders annual meetings/nominations/dividens etc.

  7. P.Damoyi

    I am also one of those taken for a ride and I am thinking to sell my shares and get that penny back,I thougt I invested to better my life but I regret the day I was tempted by this so called investment.P Damoyi

  8. mbalenhle kheswa

    Iam one of those who was robbed by media24, I have tried to sell this shares buy no luck, All I need is my money and I sick and tired of this company they must give my money back

  9. Stoney

    I believe blacks have been scammed on their down trodden caused by very same elements and no sharing of wealth for them, perhaps land without compensation is fantastic equivalent

  10. Martha

    It is sad that this is happening even me we I bought the shares in 2006 for R500.00 and it still like that. The last time I saw them giving something it was about R14.00 and till now we still waiting.

  11. Refilwe Boshego

    Please Media24 give us the little we invested. It’s fine, you can keep your interest gained through our hard earned cash but please just give us what we put in

  12. minnie

    myself and my daughter have bought shares for the past 2 years we have not received any correspondence how can we sell our shares

  13. Rachel Mndawe

    Am one who also bought those black people’s only shares and it’s now 12 years and we don’t get any updates on our hard earned money. I am having financial crisis and stress and having so many loans to try and close that gap caused by those media 24 faceless people . Maybe we should approach the ombudsman relevant to investments in a bid to get back our hard earned money. No wonder this scam was targeted at us poor black people

  14. Mapule

    Im also one of the people who bought shares is in 2006 I haven’t receive any information whatsoever. I need my money back the last time I checked they told me that my shares it still the same and If i want to sell it will also be taxed and I will get less than what I have put, this is heartbreaking some people they don’t have mercy that even want to eat what is left of you.

  15. Sylvia Klaasen

    I am also in the same boat. I brought for myself and son in the year 2006. We were fooled by Media24. I really believe this should be investigated.

  16. Thabisile

    I’m also a victim to this scam of buying equity shares from Welkom Yizani.I never thought that 12 years down the line I would not veade any justifiable return on my investment. This is like adding salt to the wound for us Black people as these as designed to redress the injustice of the past bit give us false hope and rob us. How much money did Media 24 and Naspers made when we invested in these shares and are Still making at our expense?

  17. Andrew

    To me Welkom Yizani Shares have been fair, I was shocked or rather surprised that people are complaining, so far the dividends I have received I am glad to say exceeds the amount invested, yes shares were bought at R10 per share, but shares fluctuate, check the graphs people and buy low to sell high.
    Hope you get help from yizani.

  18. Selomane Stephen

    Stephen Selomane one of does who bought shares in welkom yezani.Investigation must be done by our government to find out why they have been trapped for so long time.

  19. Tony

    How do I sell my welkomyizani shares…don’t see any progress with this shares just a waste of time…

  20. Stoffel

    Welkom Yizani should just unwind and investors given shares in Naspers.Phuthuma Nathi,the empowerment scheme which also falls under the parent company have been given dividends to the tune of R19 per share for the past few years.Why can’t we also be given something decent instead of R146 each year..indeed a nice trap in the name of black empowerment
    P

  21. Stoffel

    Welkom Yizani should just unwind and investors given shares in Naspers.Phuthuma Nathi,the empowerment scheme which also falls under the parent company have been given dividends to the tune of R19 per share for the past few years.Why can’t we also be given something decent instead of R146 each year..indeed a nice trap in the name of black empowerment ..

  22. Ambrose Denniss Rakgoadi

    A commision of inquiry just like the Zondo commision of inquiry into Zuma/Gupta state capture should be set up to investigate these atrocoties committed by these faceless day light robbers who disguised themselves under the pretense of BEE scheme.Who are the beneficiaries and who were taken for a ride, obviously the unsuspecting black majority who were sold a pie in a sky.

  23. Teboho Mohlokonya

    it is true we were led astray by the so called naspers and media 24 in their conquest of self enrichment; while we deprived ourselves of the many things. Im also one of those who bought about 100 shares and the only cheque i received was of R18.00 in 2011/12 since then i haven’t received any correspondence from them.we request a commission to inquire about this fraud

Leave a Reply

Your email address will not be published. Required fields are marked *