The Weekend View

Alleged ponzi scheme shines light on over stretched middle class


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Recent reports about the alleged collapse of suspected Ponzi scheme MMM have brought the issue of the over stretched middle class to the fore. This as the majority of the working class are reportedly investing in the scheme to supplement their income. A recent study by Momentum and the University of South Africa found that the real net wealth of South African households decreased in 2015. According to the study, if this situation is not reversed, a growing portion of the middle aged and middle class will turn towards government for assistance. However, the government is already overstretched given a lack of fiscal resources and not being able to even fully assist the low income groups. We spoke to Thobekile Ndaba who is a participant at MMM and says she began investing in the alleged Ponzi scheme in order to supplement her income as an accountant, engineering student and MMM representative in KZN, Halalisani Langa, Spokesperson Brigadier Hangwane Mulaudzi and researcher at the Department of Taxation, College of Accounting Sciences at Unisa, Prof Bernadene de Clercq...
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