Business Practices Committee Report 79

Metro advertised extensively in newspapers and magazines. Advertisements were found in the following newspapers: Advertiser, Beeld, Citizen, City Vision, Caxtons Limited (Northcliff Melville Times, North Eastern Tribune, Rosebank Killarney Gazette, Sandton Chronicle, Randburg Sun, Roodepoort Record and Midrand Reporter), Landbou Weekblad, Finansies & Tegniek, Finance Week, Huisgenoot, Pretoria News, Sowetan and the Star. The advertisements were placed between 21 June 1999 and 2 February 2000. From April 1999 to December 1999 Metro paid R105 397.11 towards advertising costs. It was later affirmed by Bezwick that the placing of the advertisements were discontinued because Metro experienced cash flow problems. Metro advertised an "opportunity" to earn 5 per cent per month on investments placed with it. A copy of a typical advertisement is to be found on the following page.

Consumers or potential investors who were interested in the opportunity had to call one of the names mentioned in the advertisements. Once they expressed their interest to buy shares a number of documents, such as those that "X" had, including an "Application for Ordinary Shares", were sent to them.

A list of shareholders as at 28 February 2000 and obtained from Metro contained 156 surnames. Some surnames appeared more than once which implied that less than 156 consumers bought Metro shares as at 28 February 2000. Next to the names of a number of shareholders were the words "Pd Out". According to Bezwick the shares of these shareholders were bought back. The shareholders on the list paid R7 498 500 for an equal number of shares. These shareholders effectively bought their shares from Holsthauzen, and not from Metro. Shareholders were promised a "monthly dividend".

LOOK AT THIS AND DECIDE FOR YOURSELF!

Are you going on retirement??

Have you been retrenched??

WE CAN HELP YOU MAKE PROVISION FOR THOSE

UNEXPECTED DAYS

For example buy R40 000 shares now and get R2 000,00 per

month for the time period your shares are kept

THESE SHARES CAN BE SOLD FOR THE SAME AMOUNT

YOU BOUGHT THEM FOR.

For more information phone Zane Beswick at

(011) 815-2899 / 082 887 3916 or

Contact Zelda Els at (011) 816-2899 /

082 902 8564

e.g. 12 Months x R2 000.00 = R24 000.00

- 12.5% (TAX)

TOTAL  R21 000.00

+ Share valueR40 000.00

Total value after 12 months:

R61 000.00

Limited amount of shares available

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