Propalux commenced business in May 1997. It accepts investments from clients. The alleged minimum amount accepted is R5 000, although it was later established that smaller amounts were accepted. A 40 percent return on these shares is promised after 12, 24 or more months. An investor who is prepared to invest his money for 15, 27 or 39 months is promised a return of 50 per cent per annum. The returns are calculated at simple interest. Propalux also has an "income provider" plan. An investment of R200 000 provides for an income of R4 500 per month for 10 months and investing R20 000 would yield R650 monthly for 10 months. The first "incomes" are paid during the third month after the investments were made. investors in the "Income provider" plan are refunded the capital invested after a certain period.