Hundreds of Eastern Cape residents have been left out of pocket after the collapse of a Gqeberha-based investment operation known as Growing Asset.
The enterprise, which promised high returns through profit sharing, initially paid out to investors.
However, by March, the payments had abruptly stopped, with investors unable to access their funds.
Many of the alleged victims said they had lost their life savings.
The Hawks are investigating.
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the company operator had allegedly moved from town to town, convincing people to invest their money with promises of big, fast returns.
Mhlakuvana said the operation had later collapsed.
He said the Hawks had received many complaints and urged people to come forward with any information.
“The Hawks are urging the public to remain vigilant regarding this particular [allegedly] fraudulent investment, as it is circulating throughout the province, recruiting individuals to invest their money,” Mhlakuvana said.
“The Hawks are urging members of the public with information regarding [the outfit and its operator] to report such matters to law enforcement agencies instantly.”
About 19 investors spoke to The Herald over the past two weeks.
On a WhatsApp group created by the complainants, there are almost 300 participants.
They come from as far as Cape Town and Durban, but most are from the Eastern Cape, particularly Gqeberha.
Some said they invested their entire nest egg, while others who first tested it out, claimed the operation collapsed before they could put in more money.
The losses varied between R500 and R750,000.
The company owner, Phumelele Nono, had allegedly offered large interest returns when promoting Growth Asset, which started operating in 2024 and was based in Greenacres but has since closed its doors.
Numerous attempts to obtain comment from Nono by phone and WhatsApp messages proved futile.
According to the contract seen by The Herald, Growing Asset promised that the money invested would be placed in world markets and in profitable currencies on the JSE.
The investors were told they would earn compound interest over a 12-month period, with profit payouts every three months.
At the end of the 12 months, investors could either withdraw their money, after giving 45 days’ notice, or renew the contract.
There were two main investment options:
- A tax-free investment for smaller amounts (from R100 to R2,500), with annual dividend payouts; and
- A growing asset investment for larger amounts (from R5,000 to R5m), with profit share payouts every three months and annual dividends. However, this option included 10% tax on profits payable to Sars.
The contract warned that profits were not guaranteed and could change depending on how the markets performed.
Gqeberha resident Tulani Mdunyelwa said he invested R5,000 (low risk) and R1,000 in the high-risk option.
“They paid me R540 in December 2024 and R324 by March.
“I then requested my R5,000 back but never received it. I also signed a 45-day notice period for a withdrawal, but nothing happened.”
Mdunyelwa said he was now out of pocket and depressed.
Another Bay resident, Zola Patrick Mfulana, said he invested R130,000 over the course of a few months.
“I did that thinking I will receive profit share returns every month.
“Mr Nono [allegedly] promised that the capital was invested at the JSE and said it was safe and secure.
“Since March, I have not received my profit-share returns.
“Mr Nono keeps promising that he will pay but does not fulfil his promises.
“Now I’m deep in debt because I’m not working and I poured most of my pension money into this company.”
Neo Nketu, also from Gqeberha, said he invested R80,000 in October.
“I received a payout of about R23,000 in January. I was expecting another in April but have not received anything so far.
“Mr Phumelele Nono didn’t pay any amount after January, so I need to get my money back.
“I’m struggling because I borrowed the money from the bank.”
Nonkuthalo Jani said she invested R10,000.
“I received three small interest payments.
“I was told, if I want to exit, I will get my money back, but that did not happen.”
Jani said she now had to beg for milk and bread from neighbours just to get by.
Elliot Zingisile Mbasane of Kwazakhele said he was going through a divorce because of the money he had lost.
“I joined in February and paid R15,000.
“In April, I paid another R30,000. This affected me heavily, I am going through a divorce because of this.”
Phumzile Zazaza said he invested R753,000.
“Initially, Growing Asset was running smoothly without any interruption, and profit-share returns were paid until February 2025.
“The glitches started in February.”
In a promotional video posted on Facebook earlier in 2025, Nono encourages those present at the event to invest.
“In SA, the population is 56-million,” he said.
“But let me just tell you a secret.
“Only 11-million people own shares on the JSE. Out of 56-million people, only 11-million.
“Now, let’s subtract 11-million from 56-million. That leaves us with 45-million people who are in the dark. They get paid today and by tomorrow, they have no money.
“When you are a shareholder, you need R10,000 or R15,000 [to invest]. You don’t need to apply for a loan.
“We specialise in diverse investment.
“Listen carefully — Growing Asset can only close its offices if people stop buying KFC.
“That’s the only reason we would close our offices — because there would no longer be profit.
“Do you understand? Before you walk out that door, think about how many KFCs we have in SA.
“One thing we can tell you is you will receive the profits. Are we together?”
The Growing Asset website was no longer accessible at the time of publication.
The Herald
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