Report 73 Business Practices Committee14. Meetings with some Investors |
On 23 February 1999 officials of the committee met with Dr Eloff(Eloff), a retired dentist. Eloff said that he knew VdDussen since 1992 or 1993. He and VdDussen were neighbours and members of the same congregation. Eloff said that there was a relationship of trust between VdDussen and himself.
Eloff underwent major surgery on his spine and after the operation he was completely unable to carry on his work as dentist. He seeked the advice of VdDussen who recommended that he surrender all his policies and invest it with him (VdDussen). Eloff and his wife each paid R200 000 for 800 shares of R1 each in Omnisure during May 1993. At about the same time Eloff sold his house to Mrs VdDussen. Eloff held the first mortgage over the property. VdDussen regularly paid the interest on his investment but these payments stopped towards the end of 1998.
On 25 February 1999 an official of the Committee met with Mr LM Herbst (Herbst), another VdDussen investor. Herbst and VdDussen's father were colleages and Herbst said that he knew VdDussen since he (VdDussen) was about two years old. Herbst invested R200 000 in RRB on 14 October 1994 and his wife invested R100 000 in Omnisure on 24 February 1994. She received a monthly income of R1 666.67 on this investment which was eventually refunded to her.
VdDussen gave Herbst a written "... buy back guarantee". This guarantee stated that, should "... your shares not be worth R1 million or more in three years time, I will buy back the shares at R400 000". Herbst, aged 62 and retired, was emotional when he said that he now experienced major financial problems because of VdDussen's actions. He also felt that he was deceived ("bedrieg") and humiliated ("verneder") by VdDussen. Over the years he did not want to upset the apple cart because VdDussen told him that the matter was "... highly sensitive, we are negotiating with foreign firms and should our competitors hear of this they will thwart our efforts". VdDussen did not furnish any evidence of "... negotiations with foreign firms".