Is Cell C walking on thin ice?

ADSL South Africa (Broadband South Africa), 22 August 2007

This is the question one can ask after Cell C got involved with Money Talk, a scheme that’s described as ‘harmful business practice’ by Andre Prakke, a forensics accountant.

What’s a forensics accountant?

A forensics accountant is a specialist in his own right.

According to Wikipedia: ‘Forensic accounting is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work. Forensic accountants often have to give expert evidence at the eventual trial. All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specialisations: some forensic accountants may, for example, just specialise in insurance claims, personal injury claims, fraud, construction, or royalty audits.’

In other words, he/she is a person you don’t want as an enemy, especially if you are cheating people out of their hard-earned money.

How does Money Talk works?

This is how it works…

‘…For R2 950, clients get a camera cell phone with R500 Cell C airtime, R10 000 funeral cover and membership of a scheme that offers discounts of 50% on selected hotels. Money Talk clients are also offered a “business opportunity” in which they can earn commission through referrals. Similar systems are employed by other multi-level marketing schemes such as Clientele Life, Amway and Holiday Club/Business Club. For every new client introduced, you earn R500. And for every three clients they introduce you earn R200. The money is paid to you 70% in cash and 30% in Cell C airtime’ (Cell C piggybacks on network marketing co., Mametse and Cobbett, Moneyweb, 16 August 2007).

Furthermore, according to one of the Money Talk business partners, Manzo Maphumulo: ‘…the phone is worth over R4 000, but many clients might not be convinced of this. He says Money Talk has exclusive importing rights for the relatively unknown Malaysian brand, M Mobile. He hopes it will become a household name as clients recognise its quality’

In other words, according to Money Talk, if we have it the right way around: You pay R2 950 and get a cell phone that’s worth R4 000, Cell C airtime to the value of R500, R10 000 funeral cover and ‘…membership of a scheme that offers discounts of 50% on selected hotels’ (Cell C piggybacks on network marketing co., Mametse and Cobbett, Moneyweb, 16 August 2007).

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