Report 73 Business Practices Committee

On 30 November 1998 the Committee responded to the letter of the attorney dated 25 November 1998. The following is a copy of this letter:

"During a meeting of the Business Practices Committee (the Committee) on 8 October 1998, attended by your client, Mr NH van der Dussen (VdDussen) and advocate "X", VdDussen admitted that he took monies from "new investors" to pay interest to "old investors". The Chairman of the Committee put it to VdDussen and "X" that the Committee regarded this practice as a harmful business practice in terms of section 1 of the Harmful Business Practices Act, 71 of 1988 (the Act).

VdDussen was requested that he immediately stop the harmful business practice and come to an agreement with the Committee in terms of section 9 of the Act. The arrangement would have included a commitment by VdDussen to cease the practice whereby "investments" are accepted from "new clients" and partly used to pay "old clients". Failure to do so would result in a section 8(1)(a) investigation by the Committee into the business practices of VdDussen and his businesses.

The Committee received a note from VdDussen stating: "Ek, Nicolaas Hermanus van der Dussen, ID no 5705225056083, onderneem hiermee om direk of indirek, geen beleggings van die publiek 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". This "undertaking" was not specific enough and thus not acceptable to the Committee.

It is not a question that certain allegations "... have never been tested or proven". VdDussen admitted that he is involved in a harmful business practice. This statement of VdDussen could obviously be confirmed by all those present at the meeting of the Committee on 8 October 1998, including advocate "X".

At its meeting on 8 October 1998 the Committee resolved that should the parties fail to come to an agreement in terms of section 9 of the Act, the Committee would undertake a section 8(1)(a) investigation in terms of the Act into the business practices of VdDussen and his businesses. The Committee meets again on 8 December 1998 and it would then probably confirm the section 8(1)(a) investigation into the business practices of VdDussen and his businesses. The Committee noted that your client will give his full co-operation in such an investigation. Notice of the proposed investigation would probably be published in the Government Gazette of 15 January 1999"

The attorneys of VdDussen was informed by fax on 22 December 1998 that the notice of the section 8(1)(a) investigation will appear in the Government Gazette of 8 January 1999.