The "business" practices of the Inner Circle Organisation, Inner Circle SA and Charles Frederick Venter (Venter) came to the attention of the Committee on 11 November 1998. A copy of the pamphlet distributed by Venter (5) appears on pages 4 and five of this report.

Front page of the pamphlet

THE INNER CIRCLE SA ICSA

CC97/64924/23

10 Rothchild Avenue, Lindhaven, ROODEPOORT 1724

Cell 083-734-0368

Welcome to The Inner Circle SA

THE INNER CIRCLE SA (ICSA) is a dynamic multi level Stokfel Corporation. ICSA is a STOKVEL CLUB

THE INNER CIRCLE SA offers you a unique opportunity to supplement your income & to excel financially through your voluntary participation in the ICSA Multi-Level Stokvel Program

Your earning potential may become astronomical, as you help other members of THE INNER CIRCLE SA to also supplement their income.

HOW to become a member: basic INSTRUCTIONS

- 7 Steps to financial excellence -

TURNAROUND TIME PER CYCLE

If you complete the first five instructions within the first 24 hours after your personal introduction and instruction No.7 within seven after you received your seven certificates from us, then your first stokvel cycle should be completed within 5 - 6 months from the date of your personal introduction.

YOUR ICSA MAGAZINE

Active members are kept up to date through the official monthly ICSA magazine. It's our way of communicating the growth, the future happenings, new ideas and opportunities, to you, the member.

YOUR MEMBERSHIP CARD

The Inner Circle will, throughout the period of your active membership, offer many added value benefits. Simply by producing your personal membership card, you will be entitled to avail yourself access to all the many special corporate discounts which ICSA will negotiate on behalf of its members.

0998 0978996 Franchise Package Received:.......Copyright ICSA

Reverse side of the pamphlet

ICSA Stokvel List

- Total Possible Stokvel Poolmoneys Per Cycle -

Double Your Money Back Guarantee!

If you follow our step by step instructions and do not achieve your goal to earn R1 000 000 within 5 - 6 months we are ready to send back double your total startup costs i.e. R202.06. This is how confident we are that you will succeed!

MEMBERSHIP APPLICATION FORM: (Please, in block letters?);

Name.........................................................

Postal Address..........................................

Telephone Nr.............................................

Bank..........................................................

Branch....................................................... FOR THE FRANCHISEE:

Branch Code............................................. certificate No.

Type Account............................................ 0998 0980404.

Account Nr................................................ Reg. Date...........................

Introduced By............................................ Amount Pd:........................

ONLY IF YOU CO-OPERATE, YOU MAY BECOME A MILLIONAIRE IN SIX MONTHS!

OTHER BENEFITS

Your membership card • Your ICSA Magazine • Free Finance, tax- and legal advice • Funeral cover • Medical cover • Education cover

All this for only R101.03 ... come on!!! Join THE INNER CIRCLE TODAY!

THE GREATEST OPPORTUNITY FOR INDIVIDUALS THIS COUNTRY HAS EVER SEEN!

The Constitution is available to members only.

... it is important to remember that participation is completely voluntary.

0998 0978996 Franchise Package Received:Date............ © Copyright ICSA

The pamphlet contained a number of statements that are commonly applied by the promoters of "controlled" chain letters, such as:

"Your earning potential may become astronomical...".

"If you complete the first five instructions within the first 24 hours after your personal introduction and instruction No.7 within seven after you received your seven certificates from us, then your first stokvel cycle should be completed within 5 - 6 months from the date of your personal introduction. (own underlining).

"Double Your Money Back Guarantee! If you follow our step by step instructions and do not achieve your goal to earn R1 000 000 within 5 - 6 months, we are ready to send back double your total startup costs i.e. R202.06. This is how confident we are that you will succeed!"

The statement that "THE INNER CIRCLE SA (ICSA) is a dynamic (sic) multi level Stokfel Corporation. "ICSA is a STOKVEL CLUB" is obviously misleading. A genuine stokvel only operates amongst a small circle of family and friends who have a rather close and personal relationship.

On 27 November 1998 the Committee invited Venter to address the Committee on 9 December 1998 and give reasons why the business practices of Inner Circle SA (ICSA) should not be regarded as a harmful business practice in terms of the Act and why ICSA should not be closed down by the Minister.

On 8 December 1998 Venter provided an official of the Committee with two documents called "The Franchise Manual" and "The Constitution". These documents were made available to the members of the Committee at its meeting on 9 December 1998. The "Membership Application Form", reproduced on page 5 now contained an entry "Product or Service".

Venter could not attend the meeting on 9 December 1998 but on 15 December 1998 a Mr. Philip Maritz and Ms Belinda Swartz (Swartz, who also featured in Report No 64, see footnote 5) addressed the Committee.