Special investigations

Beware airtime schemes

Would-be businesspeople lose money on suspect “franchises”.

Beware of people peddling businesses based on cellphone airtime. There seem to be a number out there, with little track record of success.

Moneyweb has already profiled a company called Freetalk (and its corporate relatives: Resultfin and U Talk Mobile), which had a number of its "licencees" hot under the collar. The supposed franchisees claimed they were sold their businesses under false pretences. However, Freetalk said the licencees had not worked hard enough at their businesses to make a success of them.

Moneyweb invited successful licencees to contact us. None did, although we heard from several more unsuccessful ones.

Recently, we have heard of another, apparently unrelated, airtime scheme called Chat4Free.  It is operated by two businessmen, Johann Dreyer and Lee Samuels, who are perhaps best known for their involvement in a controversial Madiba Bay Safari World tourist development in Port Elizabeth in the Eastern Cape.

As with Freetalk, Chat4Free is based a reward card, which offers its holders discounts when swiped at "participating stores".

A number of Chat4Free licencees are unhappy with their "investments". Many are still hoping to get their money back. A couple who invested R1m in the scheme successfully sued Chat4Free for R1m.

In November last year, the Cape High Court ordered Chat4Free to pay R1m plus costs back to Martha and Petrus Cilliers, a couple who invested in Chat4Free. They have yet to receive this money. Dreyer and Samuels have yet to return Moneyweb's calls.

Last Thursday another cellphone scheme reared its head on Sharechat, an online investing forum. Members reacted with scepticism.

The scheme, called Ictel, apparently offers fixed-line calls from 10c per minute. It also has a rewards scheme where customers earn income from referring new business.

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