Report 73 Business Practices Committee5. The Proposals of the Committee and VdDussen |
The proposal to VdDussen was that he should refrain from directly or indirectly inviting the public to make investments; and/or to receive investment funds from investors for management or re-investment of such funds on behalf of the investor; and/or to offer clients or investors a "buy-back guarantee" of monies invested by them; and/or to pay interest to previous investors from monies obtained from more recent investors. These proposed unlawful business practices would not have included the selling of insurance policies and products in companies registered with the Financial Services Board or investments and other financial products in companies listed on the Johannesburg Stock Exchange.
Had VdDussen accepted the proposal, the Committee would probably have recommended to the Minister that in terms of the Act he should direct Nicolaas Hermanus van der Dussen to:
| a) | refrain from applying the harmful business practice; |
| b) | cease to have any interest in a business or type of business which applies the harmful business practice or to derive any income therefrom; |
| c) | refrain from at any time applying the harmful business practice; and |
| d) | refrain from at any time obtaining any interest in or deriving any income from a business or type of business applying the harmful business practice. |
VdDussen put forward the following proposal (directly translated from the Afrikaans):
"I, Nicolaas Hermanus van der Dussen, ID no 5705225056083, hereby undertake not to accept, directly or indirectly, investments from the public to redeem existing debts. I undertake to refrain from the participation in any business that may be involved in any harmful business practice".(14)
Officials of the Committee held discussions with VdDussen and his lawyer on 14 October 1998. An official called the lawyer on 27 October 1998 and the lawyer called the official on 29 October 1998. The proposals put forward by the officials and that of VdDussen were mutually unacceptable.
On 24 November 1998 VdDussen was advised by letter that the Committee would meet again on 26 November 1998 and consider the proposals. It was put to VdDussen that, should a proposal be accepted by the Committee, it would have to be edited by the Directorate: Legal Affairs of the Department of Trade and Industry.
On 25 November 1998 the attorneys of VdDussen informed the Committee that "... our client is not prepared to accept this draft arrangement as worded in your said letter but will be still prepared without prejudice of his rights to accept the proposed undertaking as already forwarded to yourself by Adv (called "X"). Our client has no objection in giving his full cooperation should you wish to continue with an investigation in terms of Section 8(1)(a) but believes that this draft arrangement you are now requesting our client to sign will be prejudicial to our client as none of the allegations have been in fact tested".
| 14) | Afrikaans: "Ek, Nicolaas Hermanus van der Dussen, ID no 5705225056083, onderneem hiermee om direk of indirek, geen beleggings van die publike te neem en aan te wend vir die delging van bestaande skuld nie. Ek onderneem om te weerhou van die deelname in enige onderneming wat enige skadelike sakepraktyk beoefen of mag beoefen". |