Nsikayomuzi Goodman Goqo, sentenced to eight years in prison for defrauding investors of over R70 million, is seeking to appeal both his conviction and sentence. He alleges that the Pinetown Regional Court’s ruling was influenced by judicial anger.
Goqo was convicted on more than 4,000 charges, including fraud and violations of the Banks Act. Between 2009 and 2010, he operated a Ponzi scheme through Ingede Mineral Holdings, a company based in Hillcrest, promising investors a 30% return within six months on stock exchange investments. Contracts were signed with thousands of investors before his conviction. He had been released on R50,000 bail granted in March 2014.
Goqo has engaged advocate Simphiwe Mlotshwa, former acting KwaZulu-Natal director of public prosecutions, to represent him in the High Court appeal. Mlotshwa, introduced to the court by trial attorney Ben Dlamini, argues that there are strong grounds for success.
Key points in the appeal include the State’s failure to account for R5 million withdrawn from Goqo’s frozen bank account in early 2010. Mlotshwa also contends that the sentencing by Magistrate Sphiwe Hlophe was clouded by anger, citing the legal principle from the 1975 case S vs Rabie, which states that punishment should not be driven by judicial anger.
Mlotshwa described the eight-year sentence as “startlingly inappropriate” and claims that the convictions were duplicated improperly. He further criticized the State’s failure to address constitutional questions surrounding the involvement of certain State witnesses, including forensic analysts Victor Volcker (now deceased) and Mrs. Gunnard.
Volcker’s extensive work interviewing thousands of investors, tracing payments, and conducting searches is under scrutiny. If his appointment was unlawful, as argued under Section 35(5) of the South African Constitution, the evidence he collected should be excluded from the trial.
The State, represented by senior prosecutor advocate Hazel Siraramen, has indicated they will oppose the appeal. The appeal hearing is scheduled for October 20.
