The Umkhonto Wesizwe (MK) Party has hailed Louis Liebenberg a loyalist.
Speaking at a press briefing on Friday, the party declined to comment on Liebenberg's arrest and subsequent court appearance.
However, it said Liebenberg's belief in party leader and former president, Jacob Zuma should be followed by all.
“Liebenberg is full proof of what loyalty is,” the party told reporters.
The known Zuma supporter and financier, was arrested alongside eight others for allegedly orchestrating a ponzi scheme, swindling people out of billions of rands.
Liebenberg and Zuma's friendship
The 60-year-old made headlines when he pledged to pay R500,000 of Zuma's private prosecution of Advocate Billy Downer. He is also a known ally of the former president.
He further reportedly gave Zuma around R10 million for the upkeep of his Nkandla homestead.
Ahead of his court appearance on Thursday, Liebenberg shouted “Viva Msholozi, viva MK”, as he entered the dock.
Arrest
The National Prosecuting Authority (NPA) said Liebenberg along with his wife Desiree Liebenberg; Magdelena Petronella Kleynhans; Johannes Petrus Badenhorst; Helena Dorothea Amy Schulenburg; Adriaan Dewald Strydom; Christelle Badenhorst; Nicolize van Heerden; and Walter Niendinger face 42 counts of fraud (alternatively theft), racketeering, money laundering and contravening several acts.
NPA spokesperson in Gauteng, Lumka Mahanjana, said Liebenberg and Kleynhans allegedly registered 15 companies where the remainder of the accused were directors.
In 2020, they registered a company called Tariomix where they were both directors.
“Another company, Forever Zircon, was registered in 2021. Both these companies were purportedly involved in buying and selling diamonds,” Mahanjana said.
“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.”
The proceeds from the monies were used to buy luxury vehicles and items including Kruger rands and silver coins and pay for Liebenberg’s lavish wedding and honeymoon in Greece. Various immovable properties, including an office block and two mines were purchased.
Aggrieved investigators reported the matter to police when they never received payouts of monies promised.
Kleynhans and Schulenburg were released on R20,000 bail a while Niedinger was granted R100,000 bail with conditions to surrender their passports.
The matter has been remanded to October 31 for a formal bail application for the remaining accused.
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