Trevor Manuel failed Sharemax pensioners

In 2006 Deon Basson pleaded with Ministers Manuel and Mpahlwa to act on Sharemax.

In October 2006, journalist Deon Basson wrote to Trevor Manuel and Mandisi Mpahlwa, then the respective Ministers of Finance and Trade and Industry. The letter implored the ministers to do something about property syndication company Sharemax. Basson did not receive a response to his letter. When Basson sent his letter, Sharemax had sold syndications to the value of no more than R1.5bn. It was still in its infancy. By the time of its collapse, in September 2010, Sharemax had sold schemes to the staggering value of R5.5bn. The majority of investors are pensioners.

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Please see the FULL Article on Moneyweb.

If anyone is interested in a detailed expose of what is wrong with Sharemax, the article on Moneyweb contains a link to the Prakke report.

The Prakke report is an investigation conducted into Sharemax by forensic auditor Andre Prakke. Basson asked Prakke to compile the report to assist him in his legal battle with Sharemax. The 143-page Prakke report was comprehensive and damning. Prakke took particular issue with the investment structure through which Sharemax offered its attractive returns. Prakke argued that this structure was both unsustainable and illegal. He has since been vindicated on both counts. Prakke says he received several threats of legal action, but never received a summons.

Gareth Shepperson

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