Report 76 Business Practices Committee

Early in 1997 the Committee commenced with an investigation in terms of section 8(1)(a) of the Act into the business practices of the Newport Business Club (Newport). The investigation was protracted because of numerous court cases instituted by Newport against the Committee. These are set out in detail in the Committee's Report No 56: Newport Business Club (Pty) Ltd and Others. The Committee eventually was able to present its report to the Minister. The Committee was of the opinion that Newport was involved in harmful business practices that were not justified in the public interest and that the Minister should take steps in terms of section 12(b) and (c) of the Act to prevent Newport and the parties involved from continuing the harmful business practice. On 13 September the Minister declared the business practices of Newport Business Club (Pty) Ltd illegal. Newport lodged an appeal to the Special Court constituted in terms of the Act.

The investigation into Newport was preceded by an investigation into the business practices of the Rainbow Business Club. These investigations obviously took considerable time and eventually led to the general or section 8(1)(b) investigation into "money making schemes", "money revolving schemes" or "pyramid" schemes being postponed.