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By Asime Nyide
As hundreds of BHI Trust investors look toward a long and uncertain legal process, many feel the walls of justice are crumbling around them. They have already lost their life savings in a scheme that now stands exposed as one of South Africa’s most devastating Ponzi frauds, but these victims – mostly elderly and retired – face another nightmare: a justice system they believe has left them to fend for themselves.
When the BHI Trust collapsed in October 2023, it wasn’t just money that evaporated but also the futures of some 200 people, mostly pensioners who entrusted the promise of financial security to BHI’s founder, Craig Warriner, and other Global & Local executives who promoted the scheme. Now, with their cases against former Global & Local director Michael Haldane apparently shelved by the police, many victims feel doubly betrayed. In their view, justice may be permanently out of reach.
“They Have Their Man”
Michael Haldane, who allegedly marketed BHI Trust to investors, stands charged with fraud and money laundering, alongside co-accused Sona Pillay. Yet the criminal cases that investors filed against him have reportedly been closed by the police. According to some victims, police have told them Warriner’s conviction was enough, and no further investigation into Haldane or his company is needed.
“They told us they had their guy, that Warriner was the culprit, and they closed our case,” says one investor who asked to remain anonymous. “I trusted them to protect us, but instead, they’re telling us to let it go, that it’s over.”
Warriner, the scheme’s mastermind, is already serving a 25-year prison sentence for fraud. But Haldane’s role in promoting the scheme has left unanswered questions, and for victims, that accountability gap stings. Forensic investigator Bart Henderson, who represents several investors, calls the decision to close cases involving Haldane and Global & Local “unacceptable” and a “disservice to the victims.”
Lost Savings and a Broken System
Many of those who invested with BHI Trust are elderly, having invested their retirement nest eggs to secure their futures. One 72-year-old investor describes the strain of navigating the system with both her finances and health in tatters. “We hoped this investment would be there for medical emergencies, for frail care if needed,” she says. “We do not have the emotional or financial strength to keep fighting.”
For some, even filing a case has proven futile. Another investor shared that her local police station closed her report, labelling it as “false” with “no crime committed.” Others who filed complaints with police say they have heard nothing back, sparking fears that their grievances were swept aside or merged into a larger, inactive case file.
In response to these concerns, Gauteng National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane confirmed on the Mail & Guardian that the cases remain open. However, her assurance offers little solace to those who feel the doors of justice have already been shut in their faces.
Haldane’s Travel Approval Raises Red Flags
Haldane’s case took a controversial turn in October when the Palm Ridge Magistrates Court granted him permission to travel to Japan to visit a sick relative, a move that shocked both victims and legal experts. Henderson, representing the investors, argued that allowing Haldane to leave South Africa jeopardised the case against him. His concern centres around Haldane’s access to former associate Katrinos “Kaddy” Cost, who allegedly fled the country and is believed to possess key BHI investor records.
“Giving Haldane permission to travel provides him direct access to Cost and potentially critical evidence that could protect him,” says Henderson. For many of the victims, this decision is emblematic of a system more willing to accommodate the accused than the people he allegedly harmed.
Henderson’s frustration is echoed by those who have waited nearly a year for authorities to act. “It feels like we’ve been forgotten,” says another investor. “The justice system is supposed to stand by the victims, but they’re giving Haldane a pass to fly overseas while our lives are destroyed.”
Confusion Among Victims, and an Overloaded System
Adding to the victims’ distress are conflicting messages about the investigation’s progress. Many victims report that police informed them their cases had been closed, while the NPA maintains that the investigation is ongoing. This discrepancy has left them uncertain and distrustful, with some now wary of the very authorities they initially turned to for help.
In a press response, Mjonondwane noted that some victims had not submitted necessary affidavits – a claim the victims dispute. Meanwhile, Henderson, who attempted to provide police with evidence, says his assistance has been repeatedly ignored. “This case is complex, but it’s not insurmountable. Victims have gone out of their way to share what they know, but their efforts appear to be in vain,” he says.
For the elderly investors, many of whom have limited access to legal resources, this sense of abandonment is unbearable. “We don’t have time on our side,” said one retired investor. “Our trust in the system has been shattered.”
Financial Institutions Respond, but Too Late for Some
The BHI scandal has also led major financial firms, like Allan Gray, to reevaluate their procedures. Allan Gray had partnered with Global & Local for legitimate, regulated investments and has since terminated its contract with the firm. While Allan Gray says it has put new safeguards in place, the news brings little comfort to BHI victims who believed their investments were protected all along.
“We counted on the system to prevent this kind of thing,” said an investor who attended an Allan Gray seminar alongside Global & Local advisors, who assured them of their legitimacy. “We thought we were in good hands, but that assurance has left us bankrupt.”
Calls for Accountability and Closure
The scheme’s damage extends beyond finances. For some, the years spent in court and police stations, only to find their cases closed, feels like a punishment in itself. “We’ve gone to the authorities, trusted the system, only to be told it’s closed or to wait,” says a victim who opened her case in 2023 and has since heard nothing. “We’re only asking for the truth and some measure of justice.”
Despite the mounting frustration, Henderson urges victims not to give up hope. He encourages those impacted to reach out to the investigating officer, Captain Ernest Khangale, to ensure their cases are heard. “The power of persistence cannot be underestimated,” he says, though he acknowledges that many victims have already exhausted their strength.
Justice Delayed, but Not Yet Denied?
With the next court date set for March 2025, the victims of the BHI Trust are watching and waiting, hoping that the justice system will eventually deliver the accountability they deserve. Until then, these individuals, many now struggling financially, live with the painful uncertainty that their lives may never be fully restored.
For these investors, the hope remains that their voices will be acknowledged, their suffering validated, and the people responsible held accountable. But as another court date approaches, and key figures remain elusive, many are left wondering if the justice system they trusted will ever bring them the closure they so desperately seek.
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