Money back guarantee

The Pretoria High Court has extended the order issued on 3 February 2004 until 22 February 2005, with minor adjustments.

The order of 3 February 2004 provisionally placed the collective investment scheme business of Fedbond Participation Mortgage Bond Managers and Fedbond Nominees under the joint management and control of Edwin Marcus Letty and Fedbond.

Letty has now reported to the court that his investigation has resulted in him concluding that:

a) "Properly managed, jointly as in terms of the provisional order, and under the supervision of the Registrar, and

b) Adopting and implementing the various proposals or recommendations that I make in the report, that no participants should suffer any capital loss on their investments and that participants should continue, as in the past, to receive their full income returns."

Moving for an extension of the provisional order, the Registrar of Collective Investment Shemes said in papers before the Court that, whilst satisfactory progress had been made over the term of the monitorship, there was still an element of risk for participants in the scheme.

"Hence it is imperative that the scheme remains under the intensive care of an independent joint manager in the person of the monitor, who performs his functions in close liaison with my office, as well as under the auspices of the Court".

The extension of the court order means that the status quo that has pertained since 3 Febuary 2004 remains unchanged. No new investments may be taken in by the scheme and capital may not be repaid to investors.

The monitor has to report back to the court on a number of matters specified in the order, on 22 February 2005.