In the course of the investigation into the business practices of GCI, officials of the Committee obviously perused the available books of account of GCI and other accountancy related documents such as paid cheques. It is not a function of the Committee to do forensic audits during any of its investigations. The Committee and its officials are only empowered in terms of the Act to do investigations in order to establish whether harmful business practices, as defined in the Act, exists or may come into existence.
Nevertheless, a number of interesting (alarming) facts emerged from the ledgers up to 30 June 1998, paid cheques and cheque counterfoils. The amounts quoted need not be correct in view of the auditor's remarks. The list is certainly not exhaustive.
| a) | The telephone, fax and mobile phone costs up to 30 June 1998 amounted to R329 000. |
| b) | De Beer and his father were contracted as consultants. It would seem that PAYE was not deducted from their "professional fees". |
| c) | The counterfoil of cheque 79 dated 19 December 1997 to the amount of R1 380 and made out to Burger was marked "gifts". |
| d) | The directors fees (other than salaries) were R478 820. |
| e) | "Paid to staff' amounted to R2.429 million. This amount includes the salaries of directors. |
| f) | "internal Commissions" were R481 932, including commissions paid to a number of directors. "External Commissions" amounted to R553 588.95. |
| g) | An alarming number of cheques was made out to cash. |
| h) | More than R300 000 was paid to Bigfoot Holdings (Pty) Ltd. Burger was managing director of this company. |
| i) | More than R1.1 million was paid to broker "AZ" (See section 13). |
