Amushelelo failed to answer ‘damning allegations’ – judge

Activist Michael Amushelelo failed to back up his claims of innocence in the face of “damning allegations” against him over an investment scheme into which members of the public paid close to N$87 million.

This is one of the findings made by Windhoek High Court judge Thomas Masuku on Friday, in a judgement in which assets linked to the investment scheme operated by Amushelelo were declared forfeited to the state.

Eight motor vehicles and money in 13 bank accounts make up the assets declared forfeited to the state in terms of Namibia’s Prevention of Organised Crime Act.

A total amount of about N$13,2 million was in the bank accounts in July 2020, by when the accounts had been frozen, prosecutor general Martha Imalwa has informed the court.

The cars include several luxury vehicles acquired by Amushelelo while he was running an investment scheme, touted as trading in foreign currency, under the name ‘Project One Million’ in 2018 and 2019.

The cars include a Mercedes-Benz AMG E63S, a Mercedes-Benz AMG A45, a Range Rover Sport 5.0 V8, an Audi Q3, an Audi A4 and two BMW vehicles.

Imalwa yesterday said the cars are to be sold following the forfeiture order.

The money remaining in the accounts will not at this stage be paid into the Criminal Assets Recovery Fund, which was created by the Prevention of Organised Crime Act, Imalwa said.

She added that several investors have applied to the court to have the money they claim to have lost as a result of Amushelelo’s investment scheme excluded from the funds that are forfeited to the state.

The investors’ applications will first be heard by the court before funds in the accounts declared forfeited to the state will be paid into the Criminal Assets Recovery Fund, Imalwa said.

Amushelo said yesterday that he will be appealing against Masuku’s judgement.

In documents filed at the court, Imalwa alleged that the cars and funds in bank accounts of a trust and five corporate entities controlled by Amushelelo were acquired through fraud, money laundering, tax evasion and racketeering.

Amushelelo and a business partner, Gregory Cloete, are facing 365 criminal charges in the High Court in connection with the investment scheme they ran during 2018 and 2019.

Masuku recorded in his judgement that Imalwa alleged Amushelelo used investors’ money to fund a lavish lifestyle for himself and that he did not use investors’ money for trading in foreign currency, contrary to promises made while promoting his investment scheme through his social media accounts.

Masuku remarked that in the case before him, Amushelelo did not deal head-on with Imalwa’s detailed and “damning allegations”, which were supported by documentary evidence.

It was proven on a balance of probabilities that the assets targeted by Imalwa’s application for a forfeiture order are the proceeds of fraud and that Amushelelo, his family trust and corporate entities controlled by him committed money laundering and tax evasion, Masuku found.

In an affidavit filed at the court, Imalwa alleged that Amushelelo lured investors by promising them unrealistically high growth of 50% over a two-month period on money invested in his ‘Project One Million’.

However, Amushelelo did not invest money received from investors in foreign exchange trading, but used the funds received from later investors in his scheme to repay earlier investors, Imalwa alleged.

Imalwa also said investigations have shown that investors paid a total amount of about N$86,9 million into bank accounts of Amushelelo and entities controlled by him from September 2018 to October 2019.

Out of the nearly N$87 million received from investors, about N$64,8 million was paid out to investors, while substantial funds were used by Amushelelo to buy assets, including the cars now declared forfeited to the state and to finance a lavish lifestyle, according to Imalwa.

She alleged as well that Amushelelo, his family trust and corporate entities under his control did not declare their income to the tax authorities and are liable to still pay more than N$15 million in income tax.

Also in affidavits filed at the court, Amushelelo denied that the business he says he was conducting was prohibited by any law in Namibia.

Amushelelo also denied that he conducted an illegal banking business or a Ponzi investment scheme and that the assets over which Imalwa first obtained a preservation order in December 2020 were proceeds of crime.

Masuku said in his judgement that, instead of dealing with the allegations made by Imalwa, Amushelelo “merely recorded bare denials”.

Amushelelo, his family trust and the corporate entities controlled by him did not take the court into their confidence, Masuku remarked.

He continued: “An adverse inference can therefore be drawn that they had something to hide by adopting the less than candid approach they did, notwithstanding clear and pointed damning allegations deposed to by [Imalwa] on oath.”

The prosecutor general was represented by state advocate Mariette Boonzaier in the forfeiture proceedings.
Lawyer Joseph Andreas represented Amushelelo.