Question number 447
Mr N J J R Koornhof (Cope) to ask the Minister of Finance:
(1) Whether any cases of unlawful investment schemes have been reported to his department as at 1 January 2008 up to the latest specified date for which information is available; if so, how many;
(2) Whether these cases are being investigated; if not, why not; if so, for how long;
(3) Whether any cases which were reported before 1 January 2008 are being investigated; if not, why not; if so, why is it taking so long to resolve these cases?
Reply:
The Financial Services Board is the regulator responsible for reporting on unlawful investment schemes, and has provided the relevant information to enable a response to these questions.
(1) Yes, there were 237 cases of unlawful investment schemes were reported to the FAIS Department of the Financial Services Board for the period 1 January 2008 to 15 July 2009. The table hereunder depicts the above information for each financial year falling within the period for which information is requested.
Number of cases reported
Reporting Date:
Number of cases finalised 2007/08 financial year (4th quarter): 37
1 January 2008 to 31 March 2008: 37
2008/09 financial year: 140
1 April 2008 to 31 March 2009: 70
2009/10 financial year: 60
1 April 2009 to 15 July 2009: 17
Total number of cases: 124
All cases reported during the stated time periods are being fully investigated. Investigations generally last from 4 weeks to 12 months before they are completed. 124 cases have been finalised of which 17 cases were referred to the South African Police Service for criminal prosecution.
(3) All cases reported before 1 January 2008 has been investigated. There is only one case that was reported before this time that has not yet been finalised, but this is due to its complexity.
Issued by: National Treasury
10 July 2009
