A recent example:
1. A large group wants to divest out of a particular product line.
2. A small consortium (closed corporation) is formed to manufacture the product & sell it into this group, who then focus purely on marketing & selling said product.
3. In order to build a trading profile & eventually spin the CC into a standalone venture, it uses an existing CC to do its invoicing & payments (an incubated venture).
4. Members as follows : invoicing CC - 100% member A; incubated CC - wife of member A / member B / member C
5. Wife of member A is a qualified book-keeper & keeps the books for the invoicing CC.
6. Member C calls for a Trial Balance of the incubated CC's books - takes some 4 months before figures are released. Major irregularities obvious.
7. Presses for clarification, to allow tax year-end closure, only to be told after some 5 months of trading that business is 'dormant'.
8. Keeps pressing for further clarity - cannot penetrate through the wall set up by invoicing CC's (member A) & incubated CC's wife of member A & member B.
9. All trading funds have never reached incubated CC's bank account, but remained in invoicing CC.
10. The invoicing CC's Member A has essentially hijacked the incubated CC - in total - with the assistance of his wife & member B of the incubated CC.
11. The story gets more involved... for another day.
12. The matter is now being resolved by attorney/advocates.
13. SA law is an ass & has no reasonable remedy to solve the matter.
14. Court cases would take up to 3 years to complete.
15. A clear case of fraud you may say? Well, even if a full docket was presented to SAPS by an independent consultant, it is unlikely it would even be opened in 3 years - if at all.
The absolute irony of the whole situation is as follows:
a. Member C of the incubated CC is a technology guru, who has now with-held further technical support until matter resolved.
b. Incubated CC now dying - leading to loss of jobs.
c. Member C had a raft of new technologies about to be implemented in the incubated CC - these have been shelved.
d. The incubated CC is now dying, since, without member C, it cannot design new systems, or quote on said.
Attempting to run a high-tech operation in SA is fraught with incredible difficulties. A total waste of time. Spooning from the edges - indeed...
Was the invoicing CC's member A entitled to the moneys from the incubated CC, or was he merely marauding? This fellow has actually convinced his wife & Member B of incubated CC, that he is entitled to the moneys he has hijacked. He really does...
Miro Bagrov, you are correct - in my view.
1. A large group wants to divest out of a particular product line.
2. A small consortium (closed corporation) is formed to manufacture the product & sell it into this group, who then focus purely on marketing & selling said product.
3. In order to build a trading profile & eventually spin the CC into a standalone venture, it uses an existing CC to do its invoicing & payments (an incubated venture).
4. Members as follows : invoicing CC - 100% member A; incubated CC - wife of member A / member B / member C
5. Wife of member A is a qualified book-keeper & keeps the books for the invoicing CC.
6. Member C calls for a Trial Balance of the incubated CC's books - takes some 4 months before figures are released. Major irregularities obvious.
7. Presses for clarification, to allow tax year-end closure, only to be told after some 5 months of trading that business is 'dormant'.
8. Keeps pressing for further clarity - cannot penetrate through the wall set up by invoicing CC's (member A) & incubated CC's wife of member A & member B.
9. All trading funds have never reached incubated CC's bank account, but remained in invoicing CC.
10. The invoicing CC's Member A has essentially hijacked the incubated CC - in total - with the assistance of his wife & member B of the incubated CC.
11. The story gets more involved... for another day.
12. The matter is now being resolved by attorney/advocates.
13. SA law is an ass & has no reasonable remedy to solve the matter.
14. Court cases would take up to 3 years to complete.
15. A clear case of fraud you may say? Well, even if a full docket was presented to SAPS by an independent consultant, it is unlikely it would even be opened in 3 years - if at all.
The absolute irony of the whole situation is as follows:
a. Member C of the incubated CC is a technology guru, who has now with-held further technical support until matter resolved.
b. Incubated CC now dying - leading to loss of jobs.
c. Member C had a raft of new technologies about to be implemented in the incubated CC - these have been shelved.
d. The incubated CC is now dying, since, without member C, it cannot design new systems, or quote on said.
Attempting to run a high-tech operation in SA is fraught with incredible difficulties. A total waste of time. Spooning from the edges - indeed...
Was the invoicing CC's member A entitled to the moneys from the incubated CC, or was he merely marauding? This fellow has actually convinced his wife & Member B of incubated CC, that he is entitled to the moneys he has hijacked. He really does...
Miro Bagrov, you are correct - in my view.
Comment