Old Fish becomes smelly...

Hi there all good citizens of my Edwafin Investment blog. It has been some time, I admit but, alas, the wheels of justice and the legalizers are very flat - great effort and much time is needed to get them rolling. I find these lawyers who are so furiously and slowly busy trying to get at the insurance money such curious creatures. It's as if one inadvertently strolled into a Hobbit tale. This (the rolling wheels thing) reminds me of a short memory from my youth.

My best school mate, Kallie's (so called because his turkey-pets would come running to him when he called them by shouting "koolie-koolie-koolie", - perhaps it was the promise of food, though) father was a real roughneck and owned a WW II Harley Davidson with side car - still in war colours. Of course nobody was allowed to touch his proud possession, especially the young ones.

Being young we were very much into motorcycles (we favoured the Yamaha), and since the Harley did not require a key - Hey Patrick you may find this interesting! during WW II, things didn't need to be locked down so much, as thievery wasn't so popular yet! - we would simply roll the beast from under its port, and drive around the suburb of Westdene, unlicensed and without a care in the world.

This happened a few times, until one evening after we had been joyriding, Kallie's father took out his the strap when he arrived home from work, and Kallie had to suffer some pain. We couldn't figure out how his dad had discovered our stapletonianism, and thus carried on with our, what we thought, deception. 

After suffering a few times from his father's fury, Kallie finally discovered what was happening: Pa would place a small, very small, pebble on the tracks of one of the machine's wheels. Every evening, he would walk over to his Harley and inspect the wheels, and thus could see if it had been moved or not.

Thereafter, Kallie never suffered a beating anymore because of the Harley - we always inspected the three wheels and replaced the little pebbles on our return from our travels. He did get one beating one day, though, while helping his father on a job. Dad, being a plumber, was working in the rafters of a house in progress, and shouted down to Kallie to throw him a spanner. In the process, his dentures came loose and tumbled from his mouth to the floor, landing right in front of Kallie's feet, Kallie had (and still does) a rather infectious giggle, which could also be infuriating if something unhappy happened to one. This time it infuriated dad ....

Two things today:

• It seems that the blog is worrying some folk, and this week we went fishing - so to speak. Having been born under the sign of Pisces, I tend to be familiar with many of the baits that anglers tend to use. So this is what I plan on doing and have begun working on already. DUPLICATION is really the meaning behind the new-world term of making back-ups. The scientists would call it redundancy.

• I have started a new blog called the Stapletonian and it can be found at stapletonian.chromatique.com (or else chromatique.com/stapletonian - both work equally well.) This new blog will not contain any other news but will essentially be a duplicate of this existing Blogger - blog (a Google product). Since it is a Wordpress product, I may be able to organize the material a bit better by using categories. It is in progress, so pleas be patient as I'm still learning. 

• The redundancy measure above will be further extended, to perhaps one or two additional sites, while I shall also appoint one or more persons as administrators of some sites, in case I can't manage it for some reason.

• Another, but longer, project is to collect all the material in this blog and collate it in a proper booklet in PDF format so that you can all have your own private copy of the results of my fleeting fingers. This will be freely available and there will be no copyright on it. Now, isn't that refreshing for a change.

•  I can't believe it myself, but for some reason the Hutchinsons do not appear on my side panel. You will note that I have fixed this shortcoming, and that the loving couple now appear below the big man himself. Of course, I had to blow-up the big man's picture a little to make it at least appear that he is the boss-man. It was not easy though, making a big man out of a weeny one is not menial in the least.

So I lied, that was more than two things - perhaps it's a counting problem, but then in the world of Stapletonia, you do as the Stapletonians do.

Memories

To many investors, Patrick Stapleton, and buddies of the erstwhile Edwafin is really no more than a sad memory. Yes, of course, the lawyers are still ravenously pursuing the matter to extract the last drop of blood from the dried-out carcass.
So, I wasn't going to do too much blogging about it anymore; let's face it our good old South African legal system  has again proven that we are in darkest Africa. And all the time, effort put in by Officer (I forgot which one it was - lieutenant, inspector, sergeant general? ) Sherrif and mates - all the promises; the retired judge's stern opinion of having them arrested immediately. Special trips for the interviews; long reams of paper and reports. And so on, and so on, and so on...
Every now and then there is still old anonymous who draws the attention to a matter. This fascinates me though:
There is still an Edwafin webpage, with some lonely guy prattling away about his innocence, threatening the investors and ex-staffers with hell and damnation. For one moment I thought that was in a lunatic asylum but when I looked outside I saw the stars and realized that it must be the approaching 2012 apocalypse that is causing this man so much anguish and emotional pain.
Really, old mate, if you want to make good, apologize to the people who you bankrupted - if you can give the old retiree or widow that placed so much trust in your ability to look after their money, some of the cash you want to spend on other vultures, then it is money well spent. Now you want to run to the flubble-cheek kissers again. Tut-tut-tut. None of them are going to succeed in making you look innocent - first the people's money, then your threats; where is it all going to end?
Let's be honest now, you have proven that you are an absolute dismal businessman, deplorable human being, you have shown how sparingly you apply the truth, now you are in the process of showing us all the worst you can be - totally devoid of anything, not even a bit of Dark Matter.

Of course if your incessant prattle on the website of  a bankrupt company gives you tickles - carry on...

La-La Land and the sleeping doltations

Well, well. You didn't think I would be back then, did you? I'm still around but the Edwafin thing became a real dull subject too spent too much time on. But then, the abuse, oh - the abuse that came from the anonymouses was at time hilarious. It seems that the snippets of information I provided now and then was really addictive and that the withdrawl symptoms was really too much to bear for some of you.

A major withdrawler was old Patrick Stapleton himself. It became so bad that he started a kind of blog-thingy for himself. A few weeks ago when I discovered his new/old site www.edwafin.co.za I though it was a historical remnant - a  fluke of hyperspace, hanging around like a ghost not wanting to give up - well - the ghost. You see at the time I could have sworn that the articles were written in present tense - as if Edwafin was an ongoing, flourishing enterprise.

This morning an anonymous submitted the link to the site again and, by Jove,  the tense has been changed to reflect the past. Here it is again: www.edwafin.co.za.

In typical patricksonian prattle, our friend makes the profound statement that most of the commentators on this blog (I presume), are unknown to them - Patrick and friends one presumes. Now isn't that a coincidence, as almost all the commentators to this blog have been anonymous.

Then he goes on and on and on about how stable Edwafin was, on how steady the financial footing was before we all discovered that the cash box had been emptied. Anyway, one need not repeat the whole sickness here as everyone so inclined to go and read Patrick's version on the site give above.

Then ...

Of course for the sake of balance and fairness we must also read about the other side of the story. And that is acutely summarized in an article in IOL of 24 June 2010. Go and read it here, but please let me have the pleasure of quoting the judges opinion following the judicial inquiry. Here we go:

The judge concluded:

That the company was running a Ponzi scheme, "in itself a fraudulent transaction rendering every director who was a party to it liable for the losses suffered".

That certain non-disclosures by Stapleton rendered him liable to be prosecuted criminally.

That Stapleton had committed tax fraud in that Edwafin regularly paid into a close corporation in his name more than R100 000 that was not reflected in the company's balance sheet.

That Hutchinson and former director Myrtle Winchester were liable to repay directors' fees unlawfully paid to a trust and close corporation.

Attempts to "right size" Edwafin's balance sheet to make it more attractive to investors were fraudulent.

That the directors had committed a "most serious fraud" by making false statements in the prospectuses, among them that one of its subsidiaries, Rainbow Paints, was in "good health" when it was "hopelessly insolvent".

That Edwafin's bankers had a "prima facie" case to meet and could be liable for the entire R230m loss.

That Edwafin's auditors and attorneys, by lending their names to the prospectuses, could also be liable for investors' losses.

Patrick, man it has been such a long time since you actually contributed to these pages. This is an open invitation, if you have anything to defend, to state your case to those that you owe so much. Please, present your case here instead of making wild statements of high-powered lawyers and civil actions against poor old anonymous. Let us be honest, Edwafin has been liquidated under circumstances that the judge found most irregular - do you still have a case to present under the logo of Edwafin, while it no longer has life?

Huff - Puff. My woolies over thine eyes

PS. Patrick you spelled my name wrong in your search keywords

A special request

After some silence I have a quick one for those who are still following the Edwafin saga. I was asked to publish the following (5th) circular from the liquidators on this blog. It is important that as many investors as possible attend the meeting.


Dear Potential creditors

EDWAFIN INVESTMENT HOLDINGS LTD (In Liquidation)

Masters reference : N74/09

We confirm that no creditors have proved claims at this stage, purely because there is a danger of a contribution being paid by Creditors proving claims.

This letter is addressed to all potential creditors inviting them to an urgent confidential informal meeting to take place at Hillcrest Primary School (situate at 17 Emoyeni Drive, Hillcrest, ph : 031 – 7653252) on Wednesday the 23^rd of June 2010 at 10h00.  All potential creditors are urged to attend the meeting, to consider, inter alia, the following :

1.             a confidential report to be tabled at the meeting by the joint liquidators;

2.             the continuation of the Section 417 / 418 enquiry, the costs and effect thereof;

3.             the possible litigation against third parties;

4.             the funding of pursuing the claims as contained in the confidential report.

The meeting is an informal creditors meeting because no creditors have proved claims thus far.

This is the last opportunity that creditors will have to consider pursing any recovery and you are requested to attend the meeting to provide the Joint liquidators with your input and directions.

			Berrangé Incorporated Attorneys, Conveyancers & Notaries

Before I speak about the law, let me quickly enlighten you about an aspect of suburban life that has a mixed value of bemusement and amusement for me.
Most of you will have heard about Schroedinger's cat. In short, this imaginary feline sits in a box being both alive and dead at the same time - in a state quantum indetermination - waiting for someone to open the box and observe it to be either definitely dead or definitely alive. Likewise we have no idea whether it is meowing, purring, licking its paws, or essentially in a state of smelly rot. The basic idea is, that it depends on the laws of quantum physics whether either of the mentioned states is found when the box is opened. Until this happens the kitten is in a combined state of purring, meowing and smelly rottenness.

In South Africa, however, we don't even need to place kitty in a box to observe the unknown state of a situation: you only need to approach one of those teeny roundabouts that one finds in the suburbs. In fact these phenomena of our road make available not two, but three possible states of indetermination - states that you won't know before you actually arrive at the little circle and observe another car that arrives there at the same time. The first is a simple event, is that car coming from the left that cuts right in front of you without taking the trouble of following the rules of the land by going around the teeny circle. If it is a 4x4 they may even drive right across the middle circular hump. Schroedinger made no allowance for this kind of phenomena, which we shall simply call the cranium voidal state.

The other options are somewhat more complex and depends on what you expect of the other car from the left, what he/she expects from you, what you think he/she expects and what he/she expects you will expect. Yes ... I know ... the country's road-law states that the guy entering from the right has the right of way, but as we know, in our little heap of soil, everybody regards him/herself to have the right of way, and laws are there for the ruling party to formulate at moments of seemingly unending idleness [at times they may also keep themselves occupied by copiously contributing to the state of over-population of the planet, and that this is a good thing to do is shown by the important figures who so joyfully participate in this activity in between the formulation (yes, I know you read fornication) of laws.] So if you are a descent law abiding driver, there is the possibility that you will drive within the legal guidelines, if the other guy feels similarly about matters. If not, ... well, then there is always Schroedinger's cat - is it meowing or exuding pongs of death.

Talking about cats, some of you may have noticed that we have rat-sniffers amongst us. True, I have been aware of the rats in our small community, but really, now we have sniffers as well!! Nevertheless, I wanted to write to my blog for some time now, and the sniffer merely inspired me to report back to you about my exciting Thursday, last week.

You see, I saw the sheriff. Yep, shook his hand and chatted with him another NPA personage - a superintendent nogal.

For those of you who are under the impression that not much is happening - that is only the way it seems to be. Things are really happening, only it is not happening very fast.

Mr Sherriff of the NPA is currently visiting Gauteng and we had an appointment last week in Randburg, where I dutifully went and gave my declaration under oath, as well as a good number of copies of my correspondence with Lord Patrick.

I met Mr Sherriff and a Superintendent at the Randburg Inn which, coincidently, has the smallest little swimming pool in the Southern Hemisphere - it is absolutely tiny and too cute for words - So that's all I'll say about it.

IMPORTANT
In short the message is that the investigations are ongoing and will probably continue until sometime in September. There are about 1400 investors to interview and that takes time to do properly as the NPA gents wanted to be as well prepared as can be. The NPA is also working closely with the liquidators and are also awaiting the report by the retired judge who chaired the recent private investigation [I'm still not very happy about the covertness of it all, but then who am I to judge - no pun here]. My impression is that the main Edwafin culprits are not going to get away scot-free, especially since some of their cohorts will also be aiding the state as witnesses.

Can we now begin to talk tentatively about Edwafin's fat cats? Come the end of the year, will we see them in a box, or will they continue their purring and spinning from behind the high-class 4 x 4's, visiting the local Fruit & Veg? Let's not forget that the DMA is still sprouting financial wisdom to all that have been born with a sucker gene. But then, my genes were also suckered by the financial enticement of hopefully-soon-to-be-behind-bars P & B.

Take care when you approach the round-about.