Business Practices Committee Report 80

The auditor of Propalux is Mr SA Greyling. An official of the Committee called Greyling on 28 March 2000 and asked him to furnish the Committee with the annual financial statements of Propalux for the financial years 1997, 1998 and 1999. He informed the official that he was unable to draw up annual financial statements because he had received no information from Mthombeni. The bookkeeper of Propalux is Mr S van Vuuren. He is not in the employ of Propalux but is an independent self-employed person. He informed the official that he had been unable to draw up a trial balance because he had received no information from Propalux. Propalux has, since its inception (May 1997) failed to prepare annual financial statements. This also applies to Sekheleng Propalux, L Mthombeni and Associates (Pty) Ltd and LM Fibas Padec Estate (Pty) Ltd. These entities appear to be separate legal entities on paper only. Rather, it is apparent that Mthombeni regards his financial affairs and that of all the companies as part of a single entity under his personal control.