Lead

An investigation by AllAfrica has detailed how the Morita Forestry scheme, which collapsed in late July, defrauded South Africans of hundreds of millions of rands. Central to the scheme's success was its ability to project legitimacy, bolstered by appearances from police and government officials at company events.

Coverage Comparison

The coverage of the Morita Forestry scheme in AllAfrica spans two articles. The first, published as the scheme began to collapse, focuses on the mechanics of the pyramid scheme and the role of social media influencers. The second, a follow-up, examines the involvement of state institutions in lending credibility to the scheme through their participation in events.

Key Claims

  • Morita Forestry was a pyramid scheme that promised daily payouts to investors in woodland projects in the United States. The scheme began in August 2025 and stopped processing withdrawals in July 2026.
  • According to AllAfrica, the scheme defrauded South Africans of hundreds of millions of rands. It was operated by a Chinese syndicate and used a Chinese-run payment platform to siphon funds via cryptocurrency. The platform had over 385,000 registered accounts.
  • Social media influencers and the company's local director, Puleng Violet Phakisi, encouraged people to invest. Influencers were paid by the company to market the scheme.
  • Police officers from the South African Police Service (SAPS) and officials from the Department of Forestry, Fisheries and the Environment (DFFE) participated in Morita-organized events, including tree-planting ceremonies. These events were photographed and filmed, and the images were used in promotional materials.
  • The Department of Forestry, Fisheries and the Environment stated it had no official relationship with Morita Forestry. However, the Rand West City Municipality said it was introduced to Morita by the DFFE.
  • AllAfrica reports that none of the state institutions conducted due diligence before partnering with Morita on events.

Perspectives

The Department of Forestry, Fisheries and the Environment stated it had no official relationship with Morita Forestry. The Rand West City Municipality claimed it was introduced to Morita by the DFFE, suggesting a chain of introduction between the two bodies.

Victims of the scheme have expressed that they invested because they saw marketing materials featuring police officers, leading them to believe the scheme was credible. Some victims have expressed suicidal feelings on social media, according to AllAfrica.