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Report 73 Business Practices Committee

1. The Complaints

 

 

1.1) Dr O L Fourie

 

The Business Practices Committee (the Committee)(1) received a complaint from Dr O L Fourie (Fourie) against Nicolaas Hermanus van der Dussen (ID 570522 5056 083, VdDussen) and Lodewicus Johannes Coetzee (ID 701128 5168 084, Coetzee). Fourie alleged inter alia that:

a) He met VdDussen during 1994 after he (Fourie) responded to an advertisement(2) about insurance. During 1996 he surrendered two Sanlam policies because VdDussen advised him that the investments of insurers were dwindling because of AIDS(3) and there was no guarantee that policy holders would receive monies owed to them. VdDussen allegedly did business with an Italian company which did not have the same AIDS risk factor as local insurers. He said that he could manage investments in such a way that the risk was minimal. He also gave personal surety ("borgstelling") that the amounts invested by Fourie would double in three years.
b) VdDussen stated in a letter dated 24 June 1996 to Fourie that Fourie could buy shares in Metanoia (Pty) Ltd at R10 000 per "share unit" ("aandeeleenheid"). VdDussen signed an undertaking to "buy back" the "shares" should it not be worth R50 000 or more three years from the date of purchase thereof. VdDussen guaranteed to repurchase the "shares" at R20 000 per "share unit". Fourie's wife was offered employment as a "Legal coordinator" as from 1 January 1997. Fourie was offered a post as "Environmental protection coordinator". Fourie said that he was under the impression that his investment was linked to the Italian company referred to in paragraph (a) above.
c) Fourie invested the amount inter alia because VdDussen said that he employed more than 100 people(4). He later established that VdDussen employed 10 people only. VdDussen handed Fourie a document for each 10 000 "shares" bought by him. Fourie's wife resigned to take up the post offered to her by VdDussen and also invested R120 000 of her severage package with VdDussen. Fourie himself invested R130 000 with VdDussen.
d) Mrs Fourie allegedly started working for VdDussen at his business called Realiteitsrisikobestuursdienste (Pty) Ltd (RRB)(5), trading as Realiteitsrisikobestuurders on 1 January 1997. At that time a "great fuss" was made in the office about a company called Dia-Logos. At a meeting attended by Fourie's daughter, who also worked for VdDussen, Dia-Logos was presented to interested parties. Coetzee was also present at this meeting. Fourie alleged that VdDussen, Coetzee and another person wanted to raise R6 million for Dia-Logos, R3 million by selling shares and the remaining R3 million by issuing debentures.
e) Fourie and his wife became suspicious about their "shares" in Metanoia. They made enquiries and established that the authorised capital of this company was 5 000 shares of R1 each. Mrs Fourie left the employ of VdDussen towards the end of July 1997 after he told her that she did not work for him but for Coetzee. The Fouries laid a charge of fraud against VdDussen with the Commercial Crime Unit of the South African Police Service.

 

The Fouries received a monthly "interest" on their investments until October 1998. The capital invested by them is still outstanding.

 

 

1.2) "Jay"

 

The Committee also received a complaint from "Jay" dated 28 August 1998.

 

"Jay" knew VdDussen since VdDussen operated a brokerage named Omnisure (Edms) Bpk. During 1995 Jay's employer informed him that his salary would be reduced because of the declining profitability of the employer's business. He asked the advice of VdDussen who he advised him to relinquish his employment with the firm and invest his pension with VdDussen. "Jay" bought five per cent of the shares in RRB for R230 000. He later paid a further R30 000 to VdDussen and started to work for VdDussen.

 

On 1 July 1995 Mrs "Jay" also started to work for VdDussen after he also advised her to resign from the position she then held and to invest her pension money with him. VdDussen, in a letter dated April 1995, gave "Jay" a "...buy back guarantee". VdDussen "guaranteed" that, should Jay's shares be worth less than R1 million three years from the date of the purchase thereof, he (VdDussen) would buy back the shares at R400 000. The capital invested by "Jay" is still outstanding.

 

1. The Committee was established in terms of section 2 of the Harmful Business Practices Act, 1988 ("the Act"). The purpose of the Act is to provide for the prohibition or control of certain business practices and for matters connected therewith.
2. VdDussen denied this allegation and said that Fourie told him that he was referred to him (VdDussen). Fourie, however, showed the advertisement to officials during a meeting with him.
3. An undated flier of Reality Risk Managers contained the following (directly translated from the Afrikaans): "Does your debts grow faster than your investments? Are you sure that affirmative action, RDP and Aids will not redistribute your investments?"
4. This was also denied by VdDussen. He said that the only numbers that were discussed, were the number of people that were involved in the "development process" (see section 3).
5. The directors of RRB were VdDussen, PJ du Plessis and A vd Dussen. The only shareholder now is VdDussen.

 


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