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Business Practices Committee Report 80

Propalux 46 Ltd

4. The Committee resolves to undertake a formal investigation



With the information at its disposal, the Committee resolved to undertake a section 8(1)(a) investigation (2) into the business practices of Propalux and its directors, and any employee, agent and/or representative of Propalux and its directors in respect of the activities of Propalux Limited. The following notice was published as Notice 1271 of 2000 in Government Gazette 20994 of 24 March 2000.


"In terms of the provisions of section 8(4) of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No. 71 of 1988), notice is herewith given that the Consumer Affairs Committee intends undertaking an investigation in terms of section 8(1)(a) of the said Act into the business practices of-


Propalux 46 Limited (97/05827/06), Tabile Patricia Gumbi, Ntseuwa Elizaberth Liratsagae, Selope Alfred Maeda, William Motsama Mashinini, Noliqhwa Nancy Masipa, Nompumelelo Ester Matewane, Lucky Motlalepula Mthombeni, Mamange Dinah Mofokeng, Mothibi Elias Mogoera, Lefu Daniel Moloi, Samueal Letlakana Mosoge, Motshudi Jocobeth Sealanyahe, Nkuba Salaminah Thabe, Daniel Tjelele, Maditlhare Josephine Theletsane and any employee, agent and/or representative of any of the aforementioned in respect of the activities of Propalux 46 Limited.


Any person may within a period of fourteen (14) days from the date of this notice make written representations regarding the above-mentioned investigation to:


The Secretary, Consumer Affairs Committee,

Private Bag X84, Pretoria, 0001.

Tel: 012-310-9665, Fax: 012-320-0579.

S H vd Berg, Ref. H101/20/I0/7(2000)".



2) The Committee has wide Investigative powers in terms of the Act. The committee could undertake two types of investigations, namely formal and informal investigations. Informal investigations and formal investigations are undertaken in terms of sections 4(1)(c) and section 8(1)(a) of the Act respectively. The committee is not obliged to undertake a section 4(1)(c) investigation into the business practices of a particular entity or individuals before it embarks on a section 8(1)(a) investigation. This route is followed when the committee has reason to believe that ft has sufficient information at its disposal to forego the section 4(1)(c) investigation.


Notice of a formal investigation in terms of the Act [section 8(1)(a)] is published in the Government Gazette. Should the Committee, after an investigation, find that an unfair business practice exists, it recommends corrective action by the Minister to ensure the discontinuance of the unfair business practice. The powers of the Minister am set out in section 12 of the Act. Orders of the Minister am published in the Government Gazette. A contravention of an order by the Minister is a criminal offence, punishable by a fine of R200 000 or five years imprisonment or both the fine and the imprisonment.