20090330 Response From The Fsb

Dr Mario Koppers Subject: Attachments:

FW: [My Edwafin Investment] FIN24, FSB, NPA and Documents image001.jpg

Dear Mr Koppers,

I received the e-mail hereunder from my colleague Russel Michaels this morning.

It is confirmed that the fact that Edwafin (which is not an authorised financial services provider in terms of the Financial Advisory and Intermediary Services Act-the FAIS Act and does not require such authorisation as it markets its own debentures) has ceased paying monthly interest to investors, has been brought to the attention of the FSB.

The FSB has, in turn, advised the Department of Trade and Industry (dti) accordingly as the Companies Act, which applies to Edwafin, falls under that department’s scope of responsibility. This Office has and is engaging in both dti, Edwafin and Edwabond (the latter is a wholly owned subsidiary of Edwafin and holds the license in terms of the FAIS Act) with regard to this matter (as well as other licensed FSPs who marketed the product on behalf of Edwafin with regard to whether they complied with the conditions of their licenses.

All letters of complaints received by the FSB (whether valid or not) should be acknowledged and your reference to this issue will be investigated.

Yours sincerely,

G E Anderson Deputy Registrar: Financial Services Providers

________________________________ From: Russel Michaels Sent: 30 March 2009 07:42 AM To: Gerry Anderson Cc: Manasse Malimabe; Patrick Ward Subject: FW: [My Edwafin Investment] FIN24, FSB, NPA and Documents Importance: High

Good morning colleague 1

The content of this email is self explanatory. The FSB is being taken to task by an investor in Edwafin and I suggest that some sort of response will be appropriate. Regards - Russel

________________________________ From: Mario Koppers [mailto:[email protected]] Sent: 29 March 2009 04:27 PM To: Russel Michaels Subject: [My Edwafin Investment] FIN24, FSB, NPA and Documents FIN24 Marc Ashton of FIN24 visited me this morning. He is a very nice, and intelligent young man who appears very sincere and wise. Marc will in future be following the Edwafin story on FIN24, and has invited anybody who would like to share information or experiences to email him at [email protected] , or to call him on his cell phone: 082-561-1585. Perhaps Marc will also remember to see if he can find a photograph of Carole Gardiner in their files - it would give one such a feeling of completeness to have them all in focus; a happy family. Documents Then, I have made all the documents that are included in this blog public and downloadable. Thanks to modern technology, that took merely a few clicks of the mouse button. There are a few documents in my possession that have not yet been published yet, and these include the copies of the prospectuses that I have managed to obtain. They are for the debenture series, C and D (what an adventure it was to obtain those!). I would like to offer copies of these prospectuses to any who would like to have them - even if your debentures are part of another issue, it may be handy to know that the contents of the prospectuses are mostly the same. Unfortunately, these are hefty documents and cannot be transferred to the Scrib server, but what I will do is scan them and place them on my own website at www.chromatique.com . On the left hand side of the page, on the main menu there you will find the "Free Download" tab, just follow that and you will arrive at a category called "Edwafin" (how else), follow that and you will be able to download the documents that are available there. I will try and make some direct links available as the documents are uploaded to the server. You might want to go there again in the future, as I might make available more documents as they become available. FSB Once before I tried to contact the FSB to see if they would be prepared to investigate the Edwafin story, and I have noticed that others have approached them as well. To date nobody seems to have had any response from them. Perhaps they have not yet realized that the holidays are over, and that a new year already started a few months ago. I wrote another email, today and we shall see.... In any case I have added the Liason Director, Mr Russel Michaels to the email list for new postings on this blog, and let's hope that some response will be forthcoming. One should keep in mind that they should be well aware of the situations, as Mr Stapleton (CEO: Edwafin) told me some time ago that the authorities had been informed. Nevermind, though, we should keep in mind that our 2

little Republic has many empty offices, identifiable by the customary acronyms, dotted around the country, that they possibly did not inform the correct authorities. This would never be known as information provided by Edwafin, as per usual is prity scant. Perhaps, I may suggest one thing (amongst many others) that the FSB might want to investigate: old Patrick told me once that he had invested R10,000,000.00 in Edwafin, and let's say that he is frugal in giving himself an interest rate, no not 25%, not 20%, not 18% but only the basic 15%. That means he would receive a monthly interest of R125,000.00, and we are not talking of the interest received by other family members and colleagues. I think that I as investor would already feel som much better if they treated themself with the same restrictive measures as they do us. I am actually sure they do, but it would be nice to know for sure. National Prosecuting Authority An email was also written to the NPA - very famous in South Africa and I explained the Edwafin investors problems to them. Especially, the fact that the company is illegally keeping our money. We'll see what they make of it. Perhaps one's hopes should not rise to high, as they suggest that one uses the call centre, and call centres and me just don't get along very well. How, in any case, are you going to explain such a complex tale to someone over the phone. So I put them on the mailing list as well. If they don't like it, they can tell me. Should you want to write to them as well here the address: [email protected]. <mailto:[email protected]> Currently, I have a list of about 40 co-investors who I intend to sms with the details of this blog and the forum tonight. Should the reader have access to contact details of any investors, you are welcome to contact me at [email protected], and perhaps we can compare notes. With a class action being a real possibility against Edwafin and its directors it would be prudent to have as many individuals involved as possible.

-Posted By Mario Koppers to My Edwafin Investment at 3/29/2009 03:11:00 PM ________________________________ This e-mail message has been scanned for Viruses and Content and cleared by I.S. Mailfirewall - For more information please visit www.is.co.za ________________________________ "Disclaimer and confidentiality clause - This message and any attachments relating to official business of the Financial Services Board (the "FSB") is proprietary to the FSB and intended for the original addressee only. The message may contain information that is confidential and subject to legal privilege. Any views expressed in this message are those of the individual sender. - If you have received this message in error, please notify the original sender immediately and destroy the original message. If you are not the intended recipient of this message, you are hereby notified that you must not disseminate, copy, use, distribute, or take any action in connection therewith. - The FSB cannot ensure that the integrity of this communication has been maintained nor that it is free of errors, viruses, interception and/or interference. The FSB is not liable whatsoever for loss or damage resulting from the opening of this message and/or attachments and/or the use of the information contained in this message and/or attachments."

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