Victims of Louis Liebenberg’s alleged R4bn diamond swindle ‘left penniless’, says ex-employee

A former administrative worker at Louis Liebenberg’s company Tariomix said thousands of people’s lives were destroyed by Liebenberg’s alleged diamond scam.

The man, who requested anonymity, told Daily Maverick on Thursday that what he had witnessed was heartbreaking.

“People from all walks of life have invested and lost millions of rands. I am aware that a Vredendal farmer died a month ago. He invested R2.5-million and lost everything. His wife is struggling and he was on the verge of losing his home when he passed away.

“I know that people from Bloemfontein, Malmesbury, Vredendal, Springbok, Kuruman and other parts of the country have also lost a lot of money in this scam. I’m just glad that Liebenberg has his day in court, but sad that many people were left penniless and some even committed suicide,” he said.

“Liebenberg used religion and one of his verses was ‘a message of God’ that people should reinvest and not withdraw their money.”

Viva Msholozi!

On Thursday, Liebenberg (65), his wife, Desiree Liebenberg (50), and seven others appeared in the Bronkhorstspruit Magistrates’ Court on charges of fraud, money laundering and racketeering.

The other seven were Liebenberg’s former lawyer, Walter Niedinger (55); Tariomix co-director Magdalena Kleynhans (54); Liebeneberg’s assistant, Nicolize van Heerden (58); his former office manager, Helena Schulenburg (59); Johannes Badenhorst (41) and Christell Badenhorst (42), former directors at companies run by Liebenberg; and former employee Adriaan Dewald Strydom (35).

When he entered the courtroom, Liebenberg shouted, “Viva Msholozi! [Jacob Zuma, whom he allegedly bankrolled.] Viva MK!”

Read more: In the name of God — understanding Louis Liebenberg’s grand diamond swindle

A joint statement by the National Prosecuting Authority (NPA) and Directorate for Priority Crime Investigation (DPCI or the Hawks) said the nine face 42 counts of fraud (alternatively theft), five counts of racketeering, six counts of money laundering and various statutory offences, including contraventions of the Companies Act.

The charges stem from allegations that Tariomix, which traded as Forever Diamonds and Gold, duped investors out of R4-billion. The Hawks’ investigation of the case began in 2019 and culminated with the arrests of the nine this week.

Hawks spokesperson Thandi Mbambo said the nine accused were part of a syndicate involved in fraud and dealing in unpolished diamonds.

“The mastermind/leader allegedly advertised unpolished diamonds on social media and invited potential investors to invest in his alleged diamond dealing business, with the promise of a lucrative return, which never materialised. The suspects include a couple wherein the husband is alleged to be the mastermind behind the scam, along with his wife,” said Mbambo.

Read more: Louis Liebenberg arrest the result of five-year probe into major diamond fraud

At Thursday’s bail application hearing, Liebenberg and his wife informed the court, through their legal representatives, that they would not seek bail at this time and would notify the State if they changed their minds. They will remain in custody.

Three of the accused, Niedinger, Kleynhans and Schulenburg, were released on bail ranging from R20,000 to R100,000 and instructed to surrender their passports.

Expensive cars and lavish lifestyle

Outlining the charges against the accused, the NPA and DPCI claimed that Liebenberg registered 15 companies, on which his ex-girlfriend Kleynhans and the other accused, who are either family members or “have close relations” with Liebenberg, served as directors.

Liebenberg and Kleynhans established Tariomix in 2020 and served as directors. In 2021, another company, Forever Zircon, was registered.

“Both these companies were purportedly involved in buying and selling diamonds. Potential investors were lured through social media and radio interviews to invest in the buying and selling of diamonds and were also promised high returns over a short period of time using a cashless platform called AE Switch. Thousands of investors made payments into the platform amounting to approximately R4.5-billion,” said the NPA and Hawks.

The accused allegedly used the money to buy assets, including two mines,  motor vehicles, Krugerrands and silver coins. The proceeds were also allegedly used to pay for Liebenberg’s lavish wedding and honeymoon in Greece, as well as property, including an office block.

The NPA and DPCI said that when some investors did not receive their promised payments, they became suspicious and reported the matter to the SA Police Service.

This triggered an investigation by the DPCI, the Financial Intelligence Centre, the Asset Forfeiture Unit, PwC and the NPA’s Organised Crime Unit.

The matter was postponed to 31 October for the other four accused to make a formal bail application. DM