The Department of Forestry, Fisheries and the Environment (DFFE) is encouraging the public to be cautious of investment schemes that promise unrealistic returns, following allegations involving Morita Forestry.
The department has stressed that it has no formal or official relationship with Morita Forestry, a company implicated in media reports alleging that it defrauded South Africans of hundreds of millions of rands through an investment scheme.
Recent media investigations allege that Morita Forestry promised investors daily returns through purported woodland projects in the United States. The reports claim the company operated from China while maintaining an office in Sandton and a registered address in Colorado, USA.
The DFFE said it rejects any association with the company’s alleged fraudulent activities or any suspected pyramid scheme.
According to the department, its only interaction with Morita Forestry took place during a One Million Trees Campaign tree-planting event hosted by the West Rand District Municipality in Mohlakeng Township (pictured above).
The campaign encourages businesses, non-governmental organisations and community groups to contribute to national tree-planting efforts.
Morita Forestry reportedly donated around 300 trees to the initiative after responding to the department’s public call for support.
The department emphasised that this participation did not amount to a partnership or formal relationship. It said it was never involved in Morita Forestry’s business operations, investment activities or financial affairs.
DFFE acknowledged the seriousness of the allegations and said it will assess whether the company may have used its participation in the environmental campaign to create a false impression of legitimacy.
“If proven, such conduct would represent a serious abuse of a national environmental programme intended to promote sustainable development and environmental stewardship,” the department said.
The department is also considering legal options over the alleged unauthorised use of its name, programmes and officials to advance the company’s interests.
The DFFE said it remains committed to protecting the integrity of its environmental programmes and will cooperate with any lawful investigations relating to the matter if required.
Learn how to identify scams during Money Smart Week
As part of Money Smart Week SA (August 24-30), financial experts continue to warn consumers against investment schemes that guarantee high or daily returns with little or no risk.
South Africans are encouraged to verify whether investment providers are authorised, research companies thoroughly before investing, and be wary of businesses that rely heavily on referrals or recruitment to generate returns.
Money Smart Tips from Mapepeza
Before investing your money, always ask whether the company is authorised to provide financial services, seek independent financial advice, and remember that if an investment opportunity sounds too good to be true, it probably is.
Any consumer with a complaint about their financial services provider may approach the National Financial Ombud Scheme (NFO) assistance at no cost.
The NFO is an umbrella Financial Services Ombud scheme formed by the amalgamation of 4 separate previously existing South African Ombud Schemes: the offices of the Banking Ombud (OBS); the Credit Ombud (CO); the office of the Long-term Insurance Ombud (OLTI); and the Short-Term Insurance Ombudsman (OSTI).
The NFO also has great educational resources for consumers looking to know how to spot scams, learn more about banking and credit including insurance schemes of all kind. Visit their website here.
South Africans can also check any institutions registered to provide financial services on the Financial Sector Conduct Authority Registry (FSCA) website by checking their FSP number.
Checking the registry ensures your advisor or broker is properly authorized, preventing potential scams.
