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Louis Liebenberg abandons bail: Here are the latest updates

Diamond dealer Louis Liebenberg, accused of masterminding a R4 billion diamond scam, has abandoned his bail application.

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Louis liebenberg

In a surprising move, Louis Liebenberg, the alleged mastermind behind a R4 billion diamond scam, has abandoned his right to apply for bail.

Story Summary:

  • Louis Liebenberg, accused in a R4 billion diamond scam, has chosen not to apply for bail, while three co-accused were granted bond.
  • The diamond scam allegedly defrauded investors of billions through false promises of high returns on diamond investments.
  • The case has drawn significant attention due to the magnitude of the fraud and Liebenberg’s political ties to former President Jacob Zuma.

R4 billion diamond scam: Louis Liebenberg opts to stay behind bars

This came during his first appearance at the Bronkhorstspruit Magistrate’s Court, on Thursday, where he and his wife Dezzi, along with seven co-accused, faced charges of racketeering, fraud, theft, and money laundering.

Liebenberg, a well-known diamond dealer and financier of former president Jacob Zuma, appeared upbeat during court proceedings, greeting the public gallery with “Viva Msholozi, viva MK,” a tribute to Zuma’s defacto political party.

Despite his high spirits, he chose to remain in custody, raising questions about his legal strategy.

The State opposed bail for Liebenberg and his wife, deeming them flight risks given the magnitude of the case.

The pair face allegations of swindling unsuspecting investors out of billions through a fraudulent diamond investment scheme run by their company, Tariomix, trading as Forever Diamonds and Gold.

Investors were lured in with promises of high returns, which never materialised.

While Liebenberg and his wife chose to forego bail, three of their co-accused were granted bond.

Magdalena Petronella Kleynhans (Accused 2), Helena Dorothea Amy Schulenburg (Accused 4), and former attorney Walter Niedinger (Accused 8) were each granted bail of between R20 000 and R100 000.

The State did not oppose their release, citing that they were not flight risks and had no prior convictions.

Their next court appearance is scheduled for 31 October 2024, where more details of the case will be explored.

The remaining accused, including Liebenberg’s personal assistant and other former employees linked to his diamond ventures, had their bail hearings postponed as their residential details were still being verified.

R4 billion diamond scam: What we know so far

The diamond scam allegedly orchestrated by Liebenberg is one of the largest in South Africa’s recent history.

It is believed that since 2019, Liebenberg’s company, Forever Diamonds and Gold, swindled over R4 billion from investors.

Using social media and flashy advertisements, the scheme promised large returns on diamond investments, particularly unpolished diamonds.

However, investors never saw the profits they were promised, leading to multiple complaints and ultimately a police investigation.

The Hawks, South Africa’s elite crime-fighting unit, arrested Liebenberg and his associates following a multi-disciplinary operation.

The syndicate faces 42 counts of fraud, six counts of money laundering, and theft-related charges.

The scale of the alleged fraud, combined with Liebenberg’s political connections to Jacob Zuma, has drawn national attention to the case.

Willem Petzer, a representative of some of the victims, shared a harrowing account of how one investor’s child, suffering from cancer, died after the father lost his money in the scheme.

“The man begged for his money back to pay for his daughter’s treatment, but he never got it,” Petzer told reporters outside the courthouse.

As investigations continue, authorities are still tracking the flow of funds and determining the full extent of the fraudulent operation.

The case will return to court later in the month, where further bail applications may be considered for the remaining accused.

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