Report 68 Business Practices Committee

On 8 October 1998 a meeting was held in the offices of the auditor and the available present and past directors of GCI. Present at this meeting were the auditor, Bosch, Bruyns, Burger, de Beer, Sadie, Van Wyk and Botha's attorney. Unavailable were Botha, Erasmus, Fennie, Mahlangu and van Oudtshoorn. The auditor told those present that GCI lost ± R8 million in one year because inter alia the subsidiaries were not trading and have lost substantial funds and that certain deal have fallen through. The R8 million would be difficult to restore. Thedirectors, past and present, were told that that they will probably be faced with a section 424 reckless trading suit relating to the period of their duties served.