Business Practices Committee Report 59

It is evident that XB National Care Society (Pty) Ltd operated without the underwriting of its obligations. This had the effect of unreasonably prejudicing its clients in that some members did not receive the burial benefits to which they were entitled.

XB National Care Society (Pty) Ltd, under the control of Mr M. M. Nxumalo, conducts business in a manner that has the potential of harming the relations between itself and consumers, this constitutes a harmful business practice as defined in section 1 of the Harmful Business Practices Act (Act No. 71 of 1988).

It is recommended that XB National Care Society (Pty) Ltd, Moses Michael Nxumalo or agent or any person acting directly or indirectly on behalf of XB National Care Society (Pty) Ltd or Moses Michael Nxumalo be prohibited from accepting any financial consideration from any person in terms of an arrangement that obliges XB National Care Society (Pty) Ltd, Moses Michael Nxumalo and/or the agent to provide benefits in relation to funerals.

E M Mafuna

Vice-Chairman: Business Practices Committee

3 May 1998