AFU granted preservation order against KZN company Piggy Farm
The High Court in Pretoria has granted the Asset Forfeiture Unit a preservation order to freeze the assets of Piggy Farm Trading.
The Durban-based company breeds and sells pigs, with customers able to buy the actual animals from the farm or buy and own them virtually.
It's accused of running a multiplication scheme.
The scheme is one that promises investors an effective annual interest rate of at least 20% above the repo rate.
The AFU has been given the green light to freeze Piggy Farm's assets of more than R4.3 million.
The National Prosecuting Authority’s Lumka Mahanjana says investors complained to the National Consumer Commission, which initiated an investigation.
"The NCC is urging consumers to exercise caution when dealing with this entity, which is the Piggy Farm Trading. What they promise consumers is unrealistic.
"According to the CPA, a multiplication is a scheme that promises or guarantees participants an effective annual interest rate which is at least above 20 per cent above the repo rate per annum.
"We know that pyramid schemes, multiplication schemes, chain letters are prohibited conduct as far as the Consumer Protection Act is concerned."
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