Offices of popular digital stokvel raided as worried members seek answers

• SA's financial regulator has raided the offices of a popular digital stokvel. 
• The FSCA says it suspects that United African Stokvel breached financial sector laws. 
• The stokvel has blamed payment delays on load shedding and "unexpected backup failures".
• For more financial news, go to the News24 Business front page.

SA's financial watchdog has raided the head offices of United African Stokvel as part of an ongoing investigation into the group's business activities.

The Financial Sector Conduct Authority (FSCA) said the search-and-seizure operation was conducted last month after it received a whistleblowers report. 

"The FSCA will now examine the evidence, interview the parties involved and complete the investigation," it said. 

Once it has wrapped up its investigation, the FSCA said it may decide to report the matter to the police "if required".

The regulator said it suspected the digital stokvel had conducted unauthorised business and breached financial sector laws. 

It said the stokvel was not authorised to provide financial products or services, and had not applied for a licence. 

Worried members have been flooding United African's social media pages for weeks with complaints that payments have ended. 

Members have also criticised the company for not responding to their queries via the WhatsApp number and email address it gave out for complaints. The group's website is also offline. 

The popular stokvel, which has almost 100 000 followers on Facebook, has been trying to reassure worried members that they will still be able to get their money out.  

While it has acknowledged delays to payouts, it has said that all members will receive their funds once a "backlog" has been worked through. 

In a Facebook post in May, it blamed the backlog on load shedding, "unexpected backup failures", and "delays in receiving funds from our investment accounts".

"We understand that our members are frustrated at the moment," states a post pinned to the top of the group's Facebook page. 

"We do understand that the delays are worrisome.

"We will continue to make payments on a daily basis and will continue to do so every day."

United African did not immediately reply to a request for comment.