Are we busy or what?

And there I had the warm, fuzzy, know-you-are-needed feeling. It is obvious you guys don't need me at all and get along just cosy.

Since i have essentially become a redundant factor, I'll keep this short and will build up my reserves for the next time.

We have another semi-sanctimonious anonymous. Truly, I like you, and you are a famously good person. But here you come with the "needs-to-be-proven" idea again, and yes according to the rule book, a judge needs to slam a hammer and say that it is so.

But just think for a bit: if you collect R200 million plus from people and make it all disappear (in whatever manner) within a period of 2.5 years, is that not enough proof? To me it is. A good, conscientious, honest, able and capable businessman does not twiddle away that amount of money just because he is a fine capable person - he is either an idiot or a very, very cunning and despicable personality type. Of course that applies to any associates there may be as well. Are you perhaps one of them? Mmmmmm....

A Giant awakens, and I'm off with Alice in Wonderland

When one comes to this blue planet with the decision to teach others to make beautiful, logical sequences of sounds, it is because one has to atone for past errors of judgement. I so regret the times that I must have driven my teachers to desperation when I considered myself good enough not to practice. All those good souls are now sagedly and good naturedly nodding their heads in agreement from those wispy clouds where they are in hiding. You see, they are hiding because they no longer want to be sent back to earth to teach the young ones. Fortunately, I know where to find them when I want to join them.

Yep. The earth shuddered and like a colossal heap of airy-fairiness, it stirred and lifted its little toe. You guess right, my friend, the DTI does exist. I nearly fell from my chair, but I couldn't because I was floored already.

Back in January 2009, I made several attempts to contact the DTI. Several attempts came to naught - they had fallen into a stupor and missed the planets ride to sublimity. Yet, today I get an email that starts "Dear Mario", and then continues in a style that is vaguely familiar. And the reason for that is, that the whole email after "Dear Mario," is a verbatim quote of a posting to this blog that I had made nearly half a year ago. It contains the part where I proudly pronounce my friendship with Lawrence of the FSB.

After about three of my own paragraphs, the email ends with:

For future reference please quote this number (1814536)

Response:

Please kindly see the attached complaint form, kindly fill it in for us and fax it to the dti, Office of Consumer Protection, Consumer Complaints.Fax: 012 394 2552/8, Fax: 012 394 2552/8, 012 394 2704 alternatively contact Mrs Bonolo Moloto Tel:+(012) 394 1558 Fax:+(012) 394 2558

Please contact us again if you require any further information or assistance.

Regards,

the dti customer contact centre

0861 84 33 84

A form is included, that starts with

Before you lodge this complaint you must first approach the service provider to attempt resolution of your complaint

I quietly chuckle whilst I check if I made any profits in Spread trading - I did, but not much. The hilarity is overwhelming, and was it not that some of you warned me against insanity I would have become depressed: Hey, all of you complainers, have you yet spoken with Patrick to trie and solve your problem? You must you know. Take note that there is a number for "future" reference. My deary,for all the bum-notes that have ever been played in the name of music, they haven't yet realized that the future has passed them by and that they become lost in the smelly fumes of planet Pluto - no offence to Donald Duck, but he comes to mind as well. In fact, I think Disney has reincarnated.

Anybody here who would like to volunteer to "contact them again for ... further advice and assistance?"

If you want me to publish the form, please let me know. I promise I will do so before the other toe stirs.

Regarding fraud and cheques the eggs are flying!

I have just received a note from my attorney (who has diligently been following this blog) and she commented as follows concerning the issue of cheques:

As jy 'n tjek uitmaak, welke kontant of ten gunste van iemand, is dit bedrog indiendaardie tjek nie vooruitgedateer is nie en die trekker kanselleer daardie tjek of die tjek word teruggestuur onbetaald. Die trekker maak inderwaarheid 'n wanvoorstelling aan jou.

Clearly my assumption was incorrect. But now we have to keep in mind that the cheques that were sent to us were postdated, and were subsequently cancelled. In a way it appears that Edwafin carefully orchestrated the situation. However, one wonders if they shouldn't have informed us of the cancellation of the cheques. I was informed by my bank that the cheque had been stopped not by Edwafin, so I was firmly under the impression that I would be paid. Perhaps you all have a point after all (he says with egg on his face.)

Concerning the Class Action (klasaksie in Afrikaans), I will have more to say about that later tonight, and will send a collective email to all those on the list. In the mean time, back to work, somebody has the urge to make music!

Don't break out the bubbly yet

Many thanks to all the anonymousses who have worked so hard at trying to get information about the insurers of Edwafin. I need to quote one person, as she left her info as a personal message, but I don't want to divulge her name. Before i do that, however, I have a comment to make, but I do so under correction.

When we received our cheques that went unpaid in December, those cheques were not made out to "cash", and I remember that a note with the cheque stated that we should not try and cash it over the counter, but that it needed to be deposited. I speak under correction, but I seem to remember from some time ago that only cheques that bounce which have been made out to "cash" are considered fraud if they bounce. Patrick covered his tracks very well by issuing the cheques and then cancelling them himself. The cheques therefore did not bounce either, but were cancelled. According to me this is a matter for the civil court - and that is where we are now - and not one for any criminal pursuance such as fraud. I'm not saying that they aren't fraudsters, perhaps they are, but I don't think that in this instance you will have such a claim. However, I stand to be corrected.

The liquidator whom I spoke about recently is Mr Eugene Nel of Berringer Inc, in Natal somewhere. He was going to keep the investors in the loop but he was waiting for court documents, and I suppose he is not ready yet. His company is NOT on the Internet so you will search in vain and discover all sorts of interesting things, except Berringer Inc. Here is there phone number if you have important matters to share: 033 3455331.

Now for that quote:

Hi Mario,

I have some information!!!!

Ian Coleman of Coleman insurance is indeed the man who did the Fidelity Cover for Edwafin.

According to him the policy belongs to Edwafin and so only they can place a claim.

However I'm sure the liquidators are now able to process that claim, at least for the RD cheques that were issues.

The policy is with Etana Insurance Brokers (http://www.etana.co.za)

All correspondence needs to be addressed to florence@colemaninsurance.co.za

A lovely young man Matthew at Coleman Insurance who is equally as horrified as us by the actions of the Edwafin Directors (whom he knew through their insurance dealings) has asked for your blog link to forward to other investors who he has had contact with, which I have done, so perhaps we can increase the Class Action List.

Yesterday I had a lot to say, but now I have to go an teach. Should urgent things arise, I will nevertheless report back.

At last we arrive at Sanctus

I didn't think this would ever happen. For weeks now I have been wanting to address the "I told you so" phenomena. Today is the day.

First I need to make some announcements

Edwafin Insurance
Yesterday I quoted Patrick Stapleton as saying that the insurance policy they had had been allowed to lapse. A person, interested in joining the Class Action wrote me an email this morning which I partially quote below. I suspect she wants to remain anonymous, and therefore respect that:

I can confirm that Edwafin does have PL/Fidelity cover with Coleman Gold Brokers based in Hillcrest, Durban.
It is an annual policy that falls due for renewal in July.
So from what I can see, we can definitely lay claim.
Please lets also go this route.

Class Action
I think we have now gathered a good number of individuals who have shown an interest in participating in a possible Class Action against the (past)Directors of Edwafin. I have communicated with my Attorney, and asked her to consider the matter - the feasibility and timing, etc., so I am awaiting her response. Somehow I have a feeling that we may have to delay taking positive action, if any, until the liquidators have finished their job. However, suggestions are welcome. This is an urgent matter for most of us but whatever happens, it is not going to happen overnight so we have to let things happen according to the professionals.

Again, if you would like to participate in any possible Class Action, please send your details to edwafinclass@chromatique.com. It is confidential and at this stage and places you under no obligation. Once matters have progressed, you may have to reconsider your participation, but you will always be kept fully appraised through various media and a private website.

WARNING: Those who have their feet firmly on mother Earth, you may want to stop reading.
Yesterday we spoke about the comments of anonymous, who instructed us to suspend our own thought processes, and to place all our confidence in the findings and decision of the liquidators, courts, police and other similar social constructs. My argument was to do so would be to deny our own experience of reality and essentially submit to the limitations and restriction imposed on us by groups of collective conciousness. (I tried to make that in one sentence, biut alas: no.) Anonymous's supposition is that the liquidators necessarily have the investors interest at heart. In a way yes - according to the description of the structure. First of all, though, they have their own interests at heart - money for them., it is their way of earning money. Thereafter we get the salaries that still need to be paid (including those of the directors I suspect), other primary and preferred creditors, court costs etc. not necessarily in that order. Then, and only after all those beuaties have been paid, it is the debenture holder's turn. About the legal issues I have my doubts as well, as they will have to make a appraisal whether any legal action instituted by them would be successful. Even if they decided to do so, and they win a case in court, it appears to me it will most probably be a criminal case. If so, and found guilty, those charged may go to jail or be fined, but that money does not go to the investors, it goes to.... I can not imagine a criminal court ordering any directors to pay damages to investors- a civil court action would be required for that.

Anonymous obviously meant well, as those are the values imprinted on us by those who want us to conform to their concept or idea of what reality should be. Imagine a sea of souls, all standing flat-feet on planet earth - they are the planet. Here and there, though, you have a few who stand on their toes because they regard it important to stand out above others. Now, keep in mind, excellence is a characteristic that needs to be admired but usually that results in souls with imposing statures. However, standing on your toes to achieve the same leads to cramps in one's legs and butt pains in others.

This phenomena is commonly "sanctimony", and is derived from the word sanctus or holy. (Of course that is a clue - didn't you get it?) As such it is also a quality or archetype most of us have to some degree, that is unless you are truly holy, and then you would probably not be around much. How does one recognize this archetype? They usually display the following qualities:

• They utter expressions such as: "I told you so", "when will we ever learn?", "this should never haven been allowed to happen", etc.
• Frequently they utter their profound statements after some or other calamity, but not necessarily always.
  
• Frequently they make wildly loose and vague statements that sound profound and learned, but actually bridges two different - often contradicting - realities. Yesterday's comment was about this phenomenon.
• There is the expectation that the receiver will suspend all his own thought processes and substitute them his by those of the sanctimoner.
• The sanctimoner earnestly believes that his statement is a reflection of reality, and that all other realities should therefore be incorrect and changed.

As a classically trained musician and academic I have encountered countless sanctimoners in my current sojourn on this planet. Not so much the practical musicians - either you can play an instrument well or you can't - but amongst the academics of our culture sanctimony is rampant. I have often found it most humorous that those who have the least to offer, suffer from the greatest degree of sanctimoniousness (oops!).

Here is an example. Personally, I can't stand male operatic singers, neither most females either. Their exaggerated bleating and bellowing just does not please my sensibilities (there is/was one exception and that is the late SA Deon van der Walt, a most sensible singer). Now, the fact that I don't like these huffers and puffers of noisy wind does not make them bad musicians, and does not give me the right to pronounce them as worthless to the music world. It is just my taste. It has no further implications to creation.

Yet in academia, a sanctomonier will inflate himself by merely stating that such and such a composition is "bad", or that it was a bad performance or musician. keep in mind the points I mentioned above. This person immediately assumes control over total reality by expressing his personal taste as a universal truth. Done! I'm that important. Society has become so gullible that these folks often rise to the top in their sphere of activity.

We have encountered a few of said archetypes on our blog as well. Most irritating are the "I told you so'ers". Can you see the imagination at work here. The perpetrator may be a journalist, and since most of humankind have lost the ability to communicate telepathically, we have to do so via the phone, or in person or in newspapers. Perhaps this person did, through his limited communication medium, tell or warn some about the possible dangers of investing with Edwafin. This does not imply that the message was disseminated universally in the first place. It also does not imply that his message has universal truth. By its very nature, this kind of statement is very apt following a misfortune of some kind. Imagine that Edwafin had not folded and after five year you have received your money back with interest. How many I told you so's would you have received then as opposed the ones that are uttered now. That is called benefiting from the opportunity. Of course, they miss the point of investing completely. Investing is about making money from money often with a risk factor involved. It is not an exact science, and nobody has all the answers. It is done daily on the stock exchange, and in a variety of other methods. our debentures were merely an option that we followed. As I have stated in the past, where would the cutoff point be as far as interest rates are concerned. Currently 5% would be a lot in the UK. Again they miss the point totally, and have you noticed how little concern these folk really have about those that have lost in the process. Of course not, because it is about the ego - sanctimoniousness.

Recently, we received a very nice comment from an anonymous. It said something like "Some would describe you investors as foolish, but you did nothing wrong, you were the victims..." Something along that line. Can you spot it? This is called "borrowed" reality, or transference of sanctimony.

Then there is the other famous one: "Will we ever learn?" In the absence of a particular person to direct the question to, it is made as wide as possible: "we". Obviously, although stated as a question it is in reality a statement that is secretly combined with a shake of the head. Any bets that this person did not include himself in the "we". This soul unquestionably had a field day telling all those millions of people who lost over $24 trillion on the recent stock market crash: "Will we ever learn?"

To all the investors who have now lost money to Edwafin, at least we have provided the sanctimonious with additional status. Without us, where would they be?

Apologists and Cyberbullying

Link to Class action Email address
Let me first apologize for the error in the link to the Class action email address. It is fixed now, and when you click on it, your email program should automatically start.

Insurance
A few people have mentioned the supposed insurance that Edwafin used when they promoted their debenture products. If I'm not mistaken, Patrick had informed the investors at one of the meetings that the insurance had been cancelled or lapsed because of the bungling of a staff member. At the meeting that was held with investors in Bellville on 18 march 2009, Patrick responded as follows concerning the matter of insurance:

"At the time [2 years ago] the company did have an insurance policy, it was done by a company called Komash which underwrites debt insurance. Unfortunately one of our representatives misrepresented the policy and so Komash cancelled the policy and the insurance was taken away."

I find that a real neat and convenient method of bedoozling clients. Take out a policy, publish this fact in the brochures : "Hey your money is insured!". Someone bungles, policy falls away, but you don't tell your clients, you happily continue business as usual. Yep, I was caught out at that time as well.

Those of you who have been following my blog, may have come to know me as an easy going person, rather forgiving of the misdeeds of others, but someone who wants to have the answers to life's questions. As it is not my role in this universe to punish fellow souls, there is essentially little in life that i need to forgive. Things happen - sometimes not as pleasant, but very often very pleasant things happen, like when your wife smiles at you, or your pet dog demonstrates his fondness for you by licking your hand. Yet, life comprises the whole gamut of experiences, from the deeply sad to the exuberant fortunate moments, and every moment means that you have a consciousness life running through your awareness. One way of avoiding unpleasant experiences in life is to purely decide that you won't have it as part of your awareness anymore. But this only works when you have made the experience a total part of your reality, and understand why it happened. Having said those nice things about myself, I need to stress that since I am part of life, I need to know why things happen - good or bad, and that does not often imply direct answers such as we have wanted from Patrick all these months. No, answers also come in the form of manifestations, and manifestations are, what Jung called, archetypes. The are often in human form, but are also informational structures that are created by the human collective - signs from the universal collective, hints if you will.

I have spoken about this before, and am at risk of eliciting further rude remarks from those lacking a long noses - (the longer your nose, the further you can see - spiritually then). However, in view of some comments that were received on this blog I have a point to make. In the past we have spoken of social institutions such as those representing business (SAVCA, NCC etc), or the more public side of things such as FAIS, DTI etc. These have been mbued with certain functionalities as was decided collectively by the human intelligence. However, and this is important, their functions are also limited by the collective to give it a purposeful structure and to avoid them becoming overwhelming in society - political parties, politicians are prone to this unbounded growth with its accompanying powers.
When an incident occurs such as we are experiencing with Edwafin, we tend to rely on structures to act on our behalf and protect our interests. However, due to the constraints we have construed in the manifestation of these bodies, they can only act within limits. The FSA, for example, could only suspend Edwabond's licence and will possibly retract it all together now. That's all. They could not intercede more drastically in matters to save our skins - they were limited by us, society as a collective soul. Others, such as SAVCA, and NCC, demonstrated that they were made even more impotent by us, and are essentially place-holders for a few souls that dwell with us on this planet. Granted they have their role to play as well - who else would we throw with rotten tomatos and smelly eggs.

As part of these social structures there is a spin-off. We have made the individual soul essentially impotent to think and act on his own behalf - we exclude ourselves from our collective. This has good and bad consequences. On the one hand it means that such bodies can act collectively, albeit in a limited way on behalf of the group. However, because of its imposed limitations, much falls through the crack, and the individual is unable to do anything about it, and is often not allowed to voice an opinion about it either.

Our case is an example, and at last I'm getting to the point - I think. One anonymous commented

In response to allegations of being "evil" and a "criminal" collectively, I feel that is being rather harsh and tantamount to cyber bullying.

In our country people are assumed innocent until proven guilty, let's be mature about this all and await the liquidators findings. Should there have been planned criminal activity, then it will be unearthed and those found guilty punished accordingly.

Now, I know where this person is coming from, and admire him for his convictions. But as you have seen above it set the mind working. First let's take care of the "cyber bullying" part. I agree that there is such a thing as bullying, inflicting pain on somebody (mentally or physically) to show that you are the stronger more dominant individual. What anonymous must realize is that the investors are merely reacting to those who have been doing the bullying during the last six months and in the process have lost a lot, some even everything. Since when is expressing your emotive feeling of revulsion not allowed, especially since it seems that other social structures are not at hand to correct the situation. The liquidators have their own function, to reduce what remains into cash. If they discover "legal" transgressions they may even possibly prosecute. But that is all besides the point, the fact is that a group of people fizzled money away that was entrusted to them, and I contend under false pretences.

The "collective" part, of course, this is a gross exageration, and if you read between the lines, you would know that our dismay is not directed at the telephone operator, or cleaners or basic administrative staff but it is directed at those that managed Edwafin - the managers, directors and similar bosses, yes collectively those. The question is why not? From your comment I deduce that you are an intelligent being. In the structures that we collectively conceive we allow for individuals to take certain responsibilities. They get paid accordingly, and are given a status, i.e. manager, director, CEO, etc. In return you are supposed to function at a certain level of intelligence and with professional prowess - as per societal rule. We even have devised a thing called an employment contract, in which one promises to use the brain in favour of the collective. Investors entrusted their money to these minds, only to discover that they were mindless. I must be honest, the representatives that sold us our debentures never told me that Edwafin Management was mindless, the contrary is true. They were a hip and progressive, profitable company. Do you mean to tell me that nobody noticed the water level rising - all those well paid minds?

With Edwafin, we now have the situation, where everybody has suddenly suffered a stroke, and not enough blood circulates to the brain. Therefore Mr Patrick Stapleton is the one at fault. Of course he is at fault, and he is the main guy, but not the only one -the recent court action was defended by 4 persons, not to speak about those who saw it coming. But those little beasties who postrated themselves before him, are/were part of his reality, and have cerebral prowers of their own. Of course, conveniently, like a father-figure a manager can now suddenly hide behind the figure of the boss, and do as he/she was told. Hilarious, and they got a paypacket and status to boot. Of course, there is that one thing in life called "taking responsibility for oneself", that is, thinking and wondering: "should I really participate in this? is this correct?". These are easy questions but oh so inconvenient when one is enjoying the happy life.I know of people who left the company when they discovered that unhappy things were being perpretrated, at great inconvenience to themselves. Please man, those in high places in any company are usually not chosen because they are blind, but because they can see clearly.

Your choice of the words "evil" and "criminal" was indeed a fun one, as I feel some evality in myself at times. Of course, there is a difference between being evil (ala the Devil/Satan and other similar human conjectures) and doing evil things. There is also a difference between being a criminal under the law and being a criminal in society without having been found guilty by the court (culprit, malefactor).

With your intellect you should realize that when people refer to the Edwafians as evil, they mean those people who did them wrong, took their money, lied to them, etc. and not to the conjectured reddish individual with two horns and a long tail. I mean really, that is taking it very litteral. The criminal thing is also interesting. O.J. Simpson did not murder his wife and friend, and therefore was not considered a criminal, but then he did murder his wife and friend and became a non-criminal murderer. Are you confused - don't worry me too. The point is that one can commit deeds in a reality which some of us collectively consider criminal, but are at the same time non-criminal because the judge didn't slam down his gavel and pronounced it so. Most of the investors consider the way in which we were reduced from their money "criminal", and as a group-decision that has validity. If, for some reason, such as poor investigation, possible clever manipulation of the facts by the defence, or even because correct procedures were indeed followed "according to the law", the gents and ladies get scott-free, it only means that the institution of the collectively created law, was limited by the impositions we have set ourselves (possibly for good reasons). Yet, that does not make the loss of R200 million disappear in thin air, or the lies and deceipts that were told to suddenly become truths. No, it only shows that we, humans have the need for structures that work, at times, for us, and at other times, against us. Underlying to it all is the real identity of humanity that transcends those limiting structures our perceptions of what is real.

I think we essentially dealt with the "in our country we are assumed innocent until proven guilty". We have shown that one can be both guilty and not guilty at the same time. This is not such a paradox as it at first seems. One may be guilty of something on one level of awareness, while not guilty on another. Sometimes these awarenesses coincide in a single manifestation of people, and at other times they are with different groups of awareness. You may consider Patrick to be guiltless and blameless, and that is your prerogative. For me he and his mates are as guilty as hell. But, again that is not the point, as the iniquity has already been established, a fait acompli.

My question is why this took place at all, forget the money - that's all it is, forget Patrick, his wife, the Klynsmiths, Don and all those other participants - they have their own reality to contend with. What is this all telling me about my awareness and my life? The answer is pressumably complex, and parts are revealing themselves everyday, even through comments such as yours. Yet, the universe is endless in its creative potential, and new questions roll onto the horizon as we proceed forward. To find out, I shall persue until I have found the answer - or not.

You thought that was all for today. I thought so too...

This is a real quick one (he said crossing his fingers behind his back).
No, this is serious.

We have a name
Firstly there seemed to be liquidators who were appointed by the court to look at the assets of Edwafin. Forgive me, but the lady who told me spoke at 157 miles per hour so I missed one of the names as well as some of the other stuff she told me. We all accept that he is important in this matter and will discover his name soon enough. The other is Mr Eugene Nel (I think she said of Ber(r)inger Inc.). I have his addresses and phone number but would first like to get his permission to share it with you. I tried to look them up on the Internet, but Beringer seems a name closely associated with wine and underwear, so I suppose I didn't find it.

Quack Quack
Other news is that I received an urgent message from one of our co-investors telling me that all the remaining Edwafin staff has been moved to the DMC factory in Pietermaritzburg. Of course there is currently a lot of space in the factory now, since it seemed to be nothing more than an empty shell. Now why would old father Patrick waddle his chicks over to PM? Since I have made a new friend in Pietermaritzburg I'm all for the place but surely DMC is a subsidiary of Edwafin, and Edwafin is under provisional liquidation. Huh? Should anybody still be Edwafin at all? Sniff-sniff, there is a slight tinge in the air.

In my search for Mr Nel, I found an interesting article. yes, it states a price of R25.00, but because you take the trouble of reading this blog, I'll give it to you free. This is an extract (Eric Levenstein: AIPSA NEWS, March 2008) The complete newsletter is found here:

PERSONAL LIABILITIES OF DIRECTORS

The personal liability of directors is becoming an emotive and important issue for directors sitting on boards in South Africa. The topic has gained momentum amid talk of a new King Report (the third version, King 3 ), amendments to the Companies Act and general concerns
on the part of directors concerned with incurring personal liability. The prestige of holding numerous non-executive directorships is being overshadowed by the increased personal vulnerability to which it exposes directors, particularly those who lack the requisite experience or time to fulfil their fiduciary obligations to companies on whose boards they sit.

Two recent decisions have shed light on the meaning of incurring personal liability as a director in terms of section 424(1) of the Companies Act No 61 of 1973 (as amended). Before considering the recent developments in South Africa s case law, however, it is necessary to consider the scope of section 424(1) and its application. Section 424(1) of the Companies Act reads as follows -

'When it appears, whether it be in a winding-up, judicial management or otherwise, that any business of the company was or is being carried on recklessly or with intent to defraud creditors of the company or creditors of any other person or for any fraudulent purpose, the Court may, on the application of the Master, the liquidator, the judicial manager, any creditor or member or contributory of the company, declare that any person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Court may direct'.

The intention of this section is to penalise any person who fraudulently or recklessly carries on or manages the business of a company with the intention to defraud creditors of the company. By recklessness , our courts have intended gross negligence with or without consciousness of risktaking. Our courts are, however, guided by the principle that a court should not lightly find recklessness. This principle was established in 1998 in Philotex (Pty) Limited and Others v Snyman and Others and Braitex (Pty) Limited and Others v Snyman and Others.

LATEST CASES - DIRECTORS PERSONAL LIABILITY
From a litigation perspective, the onus is on the plaintiff alleging fraud or recklessness in civil proceedings to prove such fraud or recklessness on a balance of probabilities.

Guidance has been given to our courts through the development of tests to establish recklessness. In 1992, Ozinsky NO v Lloyd and Others formulated the following test:

'If a company continues to carry on business and to incur debt when, in the opinion of reasonable businessmen, standing in the shoes of the directors, there would be no reasonable prospect of the creditors receiving payment when due, it will in general be a proper inference that the business is being carried on recklessly'.

The Philotex decision in 1998 refined the application of the recklessness test by signalling to the courts to have regard to, inter alia, the following factors: the scope of operations of the company, the role, functions and powers of the directors, the amount of the debts, the extent of the company s financial difficulties and the prospects, if any, of recovery .
Eric Levenstein

Shall we dance?

What do I hear in the distances? Could they be sirens perhaps?

Yesterday's blog was irregular. I was supposed to write an article and now I have to do it today. But I just need to "skinner" a bit.

Before I do though, I wish to thank and wholeheartedly support those of you who champion the efforts of Mrs Griffen and Mrs Chaplin. Not that I don't think that this scenario would not have taken place any time soon, but for their sheer courage and insight to realize that the end of the line had been reached. Again I repeat that there are no winners, but at least they were instrumental in preventing the number of losers to grow even bigger than it now is. They made the first and most important incision in order to get rid of a gangrenous limb.

Whistle, whistle, tweet, tweet or should I say heeha-heeha-heeha (their sirens also make a sound I can't transliterate on a Western keyboard). Yes, it appears that the police are on Patrick and comrade's case. The little birdie (and she sounds rather cute as well so watch out siccing Marc!) told me that the police were on their way to pick up documents from the Edwafin offices. Stand at attention Patrick and remaining little people!

Also heard through the buzzing electrons, is that certain institutions abroad are watching these events carefully, and are regular visitors to our blog. The Patrickownians apparently have/had plans of expanding their path of devastation and destruction past our shores and over the high seas. Damn, and I thought he was such a nice man. I think he still is a nice and a good man, as are those little ones around him that he spawned as part of his business expansions. However, like those tiny shoes on a growing Chinese girl, intended to keep them painfully dainty, it will be a relief when he is withdrawn from my reality.

Before I close, the list of people interested in a possible class action is steadily growing. Keep in mind that you are no obligation to participate when the final decision is made to go ahead. At this point we are merely eliciting possible participants as well as ideas on how to handle such an action. Should you be interested please send an email to edwafinclass@chromatique.com stating your name and contact details. Everything will be kept confidential, and you may remove your name from the database simply by sending me an email requesting me to do so. Soon I will set up another private blog designed specifically for the class action. In the meantime I will report back regularly about any progress in this respect. Perhaps it would be prudent to follow the police action as well to see if we have anything to learn or gain by their investigation. Sorry to be so serious, but it does happen; my wife loves me when I'm serious because then I make sense.

Isn't it all getting interesting

Today was going to be a relaxing fun day. From the comments I am receiving it is a fun day al right, and it seems that the apologists are now all crawling from their little holes and squeaking little nothings into the ether. It is rather embarrassing, these people who express their myopic insights into our reality. But as I said before they are part of our creation, and therefore must have a message for us - they have to be tolerated. Like fleas on the scrotum of an mange dog - it has so many aches and pains that he merely gives them scant attention. Even if their message is one of conspiracy theories, hatred, spite and pure vindictiveness we shall hear them out, bear their incessant pain with them. Moreover, I suspect that they all have links in some what to Father Patrick and co-hosts. Scratch, scratch.

Isn't it ironic, that some of them regard the court's decision as some kind of victory for the investors (or they seem to think part of the group of investors). It is mind blowing that they miss the point so much, that it seems that their intellectual eyes have migrated 180 degrees to the back of their heads (Years ago Idi Amin announced that he was going to send astronauts to the moon using metal ash cans. Suddenly this story came to mind - he also missed the point and revealed his intellectual prowess.) Am I on another planet, or do they just not realize that 4000 investors now have essentially lost over R200 million, plus interest, by their actions? They themselves might be part of the group of (ex)employees who will not be paid or have not been paid for the past month. Some of their pronouncements are pure blind hate - yes, you have been exposed as despicable, incapable, bunggling individuals, but please do not blame those that trusted you with their money; you lost our money, you and you alone, nobody else on this planet frizzled away more that R200 million of our money - not your money - but our money.

I find it significant that in the absence of constructive thought, these individuals have resorted to the childish practice of attacking people's personalities - total strangers, essentially and for all practical purposes fictional, imaginary creations in the minds of the attackers. The fact that they have resort to attack me in this way is of little consequence, as, admittedly my picture is the one my blog and they may use it for target practice as much as they like. However, this frenzied defensive mode of behaviour against anonymous individuals is akin to that of wounded animals who feel threatened and which will lunge out blindly in all directions. It brings us no closer to a psychological resolution of our situation. I am quoting a few below to make my point:

First the famous one (a masterpiece if I may say so)

Blah blah blahdiblah and blah again Mario. Perhaps you should do something about what you look like? Scary comes to mind....but then perhaps that is why you live your life in cyber space,certainly safer for humanity at large....

Then this morning the motives of Mrs Griffen and Mrs Chaplin came into question

I am not 100% sure of the motives of either Mrs Griffen or Mrs Chaplin? According to my sources it was the successor to the investment (yes a whole R60k)who initiated the liquidation. The boyfriend (a "retired" attorney with decided self-interest in this case)of the latter, who incidentally is extremely well-off, has been driven by personal revenge and sheer vindictiveness. I hope you enjoyed your celebration, that is one of vast liquid proportions as is both your wonts. May you feel just an inkling of the pain in your hangovers you have caused 2000 investors and the ex-staff of Edwafin through your malicious acts

Now isn't that grown-up! As another anonymous commentator stated: we should rejoice in the courage of these people to take action. I now of a few investors (including myself) who stood waiting in line to take the same action (of course the Americans never walked on the moon, it is all conspiracy.) Even if it was only 1 Rand that was due to these folks, you and nobody else had the right to play god and now accuse these good people of vindictiveness. Your lost the money they were entitled to - you are the responsible party - Idiot.

Here is another

All this talk of liars, fraudsters, cheats and manipulators- exactly what do you base this libelous [sic] attack on? [Hey Marc, I also got to sic someone!]

You know nothing and you will always know nothing, because there is nothing of that kind that either you or any court of law will be able to pin on any of the directors or staff.

But then, this blog would be come oh so tedious and dull without fatuous statements of this ilk.

Doesn't this attitude say it all. Nothing about the R200 million that was fizzled away by these good people, nothing about the lives they have ruined, the pain and desperation they have caused. However, note how sure this person is about not being reachable by the law - isn't that telling us something. Hey, you conspiracy theorists, now is your opportunity to get your minds working again - formulate something, please.
It is an interesting phenomena, that the fizzlers of other peoples money have now become so venomous, and will even attack, with some vengeance those they have bitten to the bone already. Even something as inanimate as a blog does not go unscathed. They seem to absolute hate the blog, but seem to follow it with great gusto, and even participate in it. Have you noticed that none of these defenders of the iniquity that has been perpetrated have at any time to date expressed any regret for the loss that the elderly and, the now, destitute have incurred. How majestically, big-hearted these people are. Of course also no mentioned of the many lies and deceptions that were fed to us over the past few months. For some reasons my eyes are inexorably drawn to the right of the page.

Fraud: Selling a person an investment with the written undertaking to repay it immediately if you default on interest payments. You broke the contract, as you did not have the capital in reserve should something like that happen because you had spent it all. You did that to 4000 investors; retirees and widowers. More than R200 million worth.
Manipulate/Liars: Since the end of October we have received nothing but manipulative conjectures of how good a state Edwafin is in. You lied, you promised. Even your prediction of "no court case" became an outright lie, you tried to manipulate the investors opinion with your pathetic attempts to sway opinions in your favour.

And then you have the nerve to call us/me malicious: tee-hee-hee or perhaps puke-puke

Then there are the ones that I do not understand

Regardless of any position held by an employee at Edwafin, from director to manager, from clerk to tea lady, NO-ONE had any authority within the company.Everything came from the TOP!

It is entirely incorrect to state that ALL directors were excluded from scrutiny and victimisation.

There are several current and ex-directors, I know, whose lives have also been ravaged through merely doing their jobs as they believed them to be.

The staff never stood in isolation from the directors.

You should be casting your allegations further upward !

Lordy, oh lordy. Working for Patrick seems to have been like going into war. Notice the use of the word "Top" in reference to the bosses at Edwafin: avoidance of reality and the fear of god is still an active role player. Shame, you don't questions the Admiral, General or even Lance Corporal; you follow all instructions without questions; you leave all common sense and humanity at home. A convenient attitude to have. Firstly, it means that you don't have to do that tiresome thing called "thinking" and, of course, when the paw-paw eventually splits and spills its black pits, you absolve yourself from all responsibility. Fancy that, and you can even blame your own loss to the fact that you were following Patrick's orders and joined those that you ripped off in complaining about the god at whom's feet you prostrated yourself. This folks, is a phenomena called "courage". You have lost your way in our reality, you need to return to puppet land, I'm sure they will reattach your strings there. Shame.

The last one goes the Carole Gardiner

Response to anonymous about the Gardiner e mail faux paux, not on your life! There is no need to play hide and seek - this is who I am, those are my contact details - it was done purposely -how more open can one get? Why? That is so obvious to me- but then that is for me to know and for you to continue speculating about( of course in the absence of anything else worthwhile in your life)

Carole, I invited you yesterday to openly write to this blog and state your case. To be honest your last comment was useless, defensive and reactionary and will only serve to get people to become more suspicious of you. I, for one, are of the opinion that you and yours have suffered loss as well in this affair - regardless of the role you may have played in this affair yourself- and that is extremely sad and unpleasant. Keep, in mind, however, that in many/most investors' eyes, you are one of the perpetrators of an injustice that has a major effect on their lives - purely because of your role as CEO of Edwabond. If that is so, or not, only you will only know for sure at this point but all will still come out in the wash.
From the excerpts I have quoted above, levelling personality attacks on people merely shows your contempt and disrespect for them. It also proves that you are feeling guilty, and perhaps guilty for a situation that was forced on you by circumstances. My question to myself would be whether I would need to reaffirm my disrespect for other humans so consistently and perpetually, or whether I should try and be of some kind of assistance by trying to heal some of the wounds that have now emerged. Keep in mind that the investors are first of all victims and never intended to be your enemy. Sorry for the sharing of my thoughts, if it is an irritation, you are free to tell me so.

The same applies to all the other (ex)employees who now perceive the investors as their enemies: the investors and certainly some/many employees are all victims; we have incurred the loss - don't despise us for it. If you were instrumental in causing that loss and pain, being a warrior a la Patrick's example, seems not to be working - he is a loser. I once made the suggestion to Patrick to make us investors part of the solution instead of the problem .I'm not sure if he didn't understand or just couldn't get himself to be magnanimous about the situation. Anyway, he chose deception and confrontation. Did he succeed? If you have any powers of consideration left, you may want to decide for yourself.

Edwafin gets honest and I get the physical once over

Final Honesty
Yesterday, midday I - like I suspect many of us did - received an sms from Edwafin. It stated the company's regrets that the court had placed them in provisional liquidation. The previous sms from Patrick was on 15 December 2008 - the day our cheques were cancelled - telling us that they were closing shop for the holidays. There we have two truths via sms, and in between nothing but conjectures, evasions, agression and BS. Congratulations Patrick, at least you didn't close shop with a lie.

Handsome Me
Amongst all the anonymi to this page we have had very few antagonistic ones. Obviously anomousnesses are ideal for those with small frontal lobes, as they will remain unknown. But that is in itself a falacy: - the universe knows them, and then they have to look at themselves every now and then in the mirror, and presto there we have anonymous, face to face. I do appreciate the other anonymi for coming up for me. However, I'm not offended and would like to express my compassion and understanding for the pain and hurt anonymous experienced yesterday. It reminds one of the story of the wife who loved her husband dearly, like a god he was. Then he did the unforgivable and she discovered it. She could not beat him up, he was too strong and she still loved him. She turned around and kicked the dog for which she otherwise had great fondness, but conveniently he was there. I was happy to be your dog for the day and am glad that you spend so much time in cyberspace with me. What puzzles me somewhat - and that is not so unusual in itself - is which picture anonymous has been looking at. For your info, the chappie at the top of the page, under the Edwafin logo, is Patrick Stapleton, himself not too shabby. However, I'm right at the bottom of the page, inconspicuous and unaffable.

Short note to Marc
Thanks for siccing me in your report for FIN24 (click here) and pointing out my confusion with isses and are's.

Am I closing the Blog?
One anonymous wondered if I was closing down the blog. I have thought about it, but I don't think it is time yet. There is still too much that needs to happen. Yes, Edwafin has closed its doors but there is still the process of liquidation that needs to take place, while I am still collecting names and suggestions for a possible class action. In connection with the possible class action, I intend to start a sister blog to this one as soon as the number of interested persons have reached a certain level. This new blog will only be open for viewing and posting to members who want to participate. More about this in due course.
If you do insist though, I will remove my picture from the blog as I do not wish to affront your sensibilities for beauty.

The Court Order
A good number of readers have downloaded the Judge's order from my web site, and I'm sure that most will agree that the Judge's arguments are immaculate and sensible, and that the conclusion that he reached could hardly have been different. As sad as it all is, it does restore some confidence in some processess of our society. Somewhere though, some confusion must have arisen. I'm sure that Patrick had told us that 20 DMC cars were on order. Perhaps a few were cancelled in the interim.

Actually events overtook me somewhat, and I should have realized that it would. But I was going to devote some time to the Klynsmith mystery. It all seems a bit pointless now, doesn't it. however, I would like to thank one of our anonymousses, for cheeting by clicking on the picture and peeping at the names of the photos the other day. To make things worse, you compared me with Carole Gardiner. You are banned from these pages for life - yours or mine which ever takes the longest.

It is now Saturday 15:30 and as I was writing the last line, Gardiner left a new comment on our blog. As promised I have published it and I won't comment - you can do that. However, please note that Mario and the various anonymousses have now become a new unified individual. It is called creating a new manifestation - Marinymous.

Carole: nothing would please me more if you could and would vindicate yourself. You are a part of our reality, as we are part of yours. If we could co-exist in harmony it would help elevate the conciousness of the universe - even if it is ever so slightly. That is why you are welcome to keep on commenting on this blog and I will continue to publish your comments. To make it easier for you, please become a follower of the blog and contribute to the blog in your own name instead of as "anonymous".

Footnote to previous blog entry.

Yes, my wife read my earlier announcement and made me fix the errors or else. Sorry but I was in a hurry. When I received the news we were in Pick 'n Pay. My wife was picking and I was paying - otherwise she is fun to be with. So I had to rush home, and then the Internet was off line reboot, reboot again and there we are, mistakes and all.

Soraya of GDLK Attorneys (I now have two favourite lawyers, any other candidates?) has kindly provided me with a copy of the court order. I will make it available to you but because of its heftiness, I would need to upload it to my own web site. Please go to www.chromatique.com click on the "Download Repository" and follow the links to the "Edwafin" section. The court order is marked "Court Order" (how else?). This will happen in the next hour or so.

The world is buzzing!

The Judge has Spoken and said:

Edwafin has been granted a provisional order of liquidation.

Whilst shopping I received a phone call from our friends in Pietermaritzburg and was informed of the judge's decision. Mr. Geyser of GDLK Attorneys also sent the fax below and requested to have it published here. Please read it carefully and direct all questions to GDLK Attorneys or perhaps via your own attorney.

I want to thank Soraya Parker for keeping me informed and appreciate her and her firm's work in this matter.

My heart goes out to all that were desperately hoping of some way out but remember the universe always looks after its own. At least the months of desperate waiting and tension is now somewhat over: now we have to wait to see the bow of the ship slowly sink below the waves.

Patrick Stapleton. In your own words: "It's all over. Finish and Klaar"

20090522 Geyser Judgment

Publish at Scribd or explore others: Law & Government liquidation order edwafin

Lost and found: Edafin in heaven?

Today a short one. I have to watch out for my dogs and the vegetable patch. First they learnt to pick the plum tomatoes, but now they have progressed and have developed a taste for cabbage, broccoli, and cauliflower (yes, they sleep on our bed, can you imagine!). The other day I had picked a cabbage and had put it on the ground to attend to some weeds. When I looked down, Pedro was busy gobbling the cabbage. But we love them to bits, and intend having them cloned.

Gardiner did have the last word (or shall we say the last subject line) and wished me a happy life while I enjoy the misery of others. Just to let you know.

Pictures! I have three and Google seemingly has no objections - bless them while we are at it. Can anybody please tell me who this person is:











No cheating now, once you have guessed correctly, I will let you have a link to another clue.

Ex-employees request

I thought that I was done, but had forgotten two matters that need to be brought under the attention of ex-employees.
One of the ladies wrote yesterday that she had a dilemma as far as her tax - IRP5 is concerned. Apparently she has not received her IRP5 from Edwafin, nor some of the last salary slips that proves that tax was deducted from her salary. Others have reported issues in similar vein. It seems that there is also a problem with pension deductions that essentially dissolved into thin air.

My suggestion to the lady was that she immediately contact SARS and inform them of the situation, and if other ex-employees in the same predicament follow suit it would probably strengthen your case. Another idea would be to consult with a labour lawyer, they are usually rather nifty in such circumstances. What you should not do is procrastinate or wait until the fan is blowing at gale force - act now.

Suggestions from other ex-employees would be very welcome.

Then my friend Marc Ashton of Fin 24 has invited any ex- or current employee with gripes and tales of woe to contact him, even if you would want to stay anonymous. He is an excellent reporter, and I can vouch that he will respect your wishes. Below is Marc's invitation in full:

If there are any Edwafin employees who would like to put forward their side of the story in the media and not be "tarred" with the same brush I'd love to hear from you.

Marc Ashton
Fin24.com
marca@fin24.com
082-561-1585

She helps you loose it, then she helps you get it back

I must admit we have some very sharp anonymouses (or is that anonymice) in our midst. Yep one picked up the email address of Carole Gardiner and traced it back to the following website (thanks anonymous you are a star):
Www.bouncegroup.co.Za

Publish at Scribd or explore others: Business & Law Finance bouncegroup

Man oh man, isn't this reality of ours fun: first she helps you loose it, then she helps you return back to normal - at a price of course. No wonder that they say that the archetype of a clown is usually a sad one.

And yes, the lady responded to my somewhat heavy-handed answer to her letter:
20091520 Response carole Gardiner

Publish at Scribd or explore others: carole gardiner

Believe me, I can say a lot, but I do not intend to make this blog a slanging match between myself and anybody else. However, permit me:

• Your phone conversation with me was disdainful, arrogant, ignorant of the facts, unhelpful and plain rude. If 2000 Cape Townians like your style, well that is their prerogative - they can always turn to the mountain for guidance.
• Based on that experience, I never intended to have a 'clear line of communication' with you. I don't think you had anything sensible to contribute then and especially not now at this point - and it shows.
• Again you ignore the plight of the 4000 investors, that you and your friends undressed, and focus all the attention on yourself - self-pity it is called, a convenient way of drawing the attention away from realities.
• There still may be plenty of opportunity for you to defend yourself in time to come. Nobody demands that of you at this moment.
• You totally ignore all the shameless lies, untruths, and deceptions that were perpetrated by you and your masters - while you were there and afterwards. Much of it recorded on paper and disseminated to the public. Nowhere do any of the pardoners, apologize for the serious ride we were taken for, but the merely want to do business as before, as if nothing happened - 'trade ourselves out of trouble." Hum-hum.
  
• Two quotes from your letters, juxtaposed: "It’s a great pity as you may have gained some useful insight into the issue..." and "in the absence of being privy to any rescue plan and for the sake of the Edwafin investors". Now what really are you telling us? Are all those investors you spoke about now no longer on the horizon? Were you actually fibbing yesterday??? Our most important insight is that Edwafin squandered R200 million of our money. Now that is a useful insight.
  

Jechchi ... conversation is over. Good luck with the new venture, hopefully it will bring you fortunes.

Further responses from Gardiner will be published but not responded to by me.