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Thread: Edwafin

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    Edwafin

    I could not find the earlier post regarding this company but I am sure it was here somewhere.
    Anyhow here is an update......hope no forumites got caught.

    FSB acts against Edwafin
    April 25, 2009

    By Bruce Cameron

    Take great care before investing in Pietermaritzburg-based company Edwafin Holdings.

    The company, which has attracted more than R200 million in investments, mainly from pensioners and teachers, is the subject of a liquidation application, a curatorship application (by its own directors) and the attention of the Financial Services Board (FSB).

    Edwafin, which has not paid interest to investors since last year, has blamed its woes on the global financial crisis.

    The Pietermaritzburg High Court has deferred making a decision on the liquidation and curatorship applications until May 18, but the FSB has acted.


    Gerry Anderson, the FSB's deputy executive in charge of financial advice, says it has suspended the financial services provider licence of Edwabond, a wholly owned subsidiary of Edwafin.

    He says Edwafin issued debentures in terms of the Companies Act and marketed them through Edwabond. Edwabond was therefore subject to the Financial Advisory and Intermediary Services Act.

    Anderson says the FSB earlier, after becoming aware of the non-payment of interest, instructed Edwabond to stop marketing the debentures until the liquidity problems had been resolved.

  2. #2
    Site Caretaker Dave A's Avatar
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    Any idea what they were investing the money in, Quinn?
    The trouble with opportunity is it normally comes dressed up as work.

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    They offered development finance to businesses mainly in DBN. They would the take an equity stake in the business and raise the funds through bonds and debentures.
    There was a big marketing campaign on the internet and they attracted over R200 million.

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    Site Caretaker Dave A's Avatar
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    In that case it's more a high-risk venture than a scam, surely.

    Is there any evidence indicating fraud?
    The trouble with opportunity is it normally comes dressed up as work.

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    The investigation is still underway, the FSB has just suspended them.

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