Investment Scam In South Africa Used Oprah Winfrey’s Name
Posted August 26, 2006 12:00 pm.
This article is more than 5 years old.
The talk show host has created quite a stir in the country with her plans to open an elite school for disadvantaged girls and local authorities claim a group of criminals set up an investment scam in Oprah’s name.
Hundreds of people lined up to sign up for the plan in the eastern city of Grahamstown. They were told that by making a simple payment of 10 rands (about $1.50 CDN) they would receive 1,200 rands (about $184 CDN) per month for 10 years.
Eight people are being questioned in connection to the alleged scam after investigators seized 160 applications and returned nearly 200 rands to their rightful owners.
Authorities say Winfrey knew nothing of the scam.
These types of schemes are common in South Africa and mainly target the poor and uneducated. The latest was apparently designed to capitalize on the buzz created by the talk show queen’s brief visit to the country to interview prospective students for the Oprah Winfrey Academy for Girls.
The TV star’s charitable foundation donated $10 million to build the school, which is slated to open its doors to 450 girls in January at no cost. South African education authorities donated the land, south of Johannesburg.
“It is a positive thing for South Africa,” local education department spokesman Lusufi Banyaza said. “We used to have private schools denying access to the poor on cost grounds. Now girls will be able to get access to quality private education.”
“We agree with the view that education can empower women.”
