Financial services company MedBond is once again embroiled in controversy – this time over an alleged delay in the processing and payment of R1 million to a client.
The client in question is prominent Johannesburg businesswoman Miss Luthuli, who invested R2 million into the company.
It has taken months of waiting for MedBond to pay her her R1 million portion.
According to Luthuli, MedBond executive director Jaco van Heerden confirmed to her in the presence of an Andries Mulder and a “Johan” that the R1 million investment payout would take seven days for the company to process.
‘Racist and patriarchal’
“For a GVA [gross value added] account of five years fixed investment, it takes a 30 days’ notice. I have now been waiting for three months to get the payment from MedBond,” Luthuli explained.
“I don’t understand the relevance of me purchasing a property in the Western Cape, on Medbond not paying me my money.
“The answer must be when are they paying the black female her money for the R2 million investment money?”
Luthuli has questioned MedBond’s reputation, lashing out at Van Heerden for “talking nonsense” while explaining to The Citizen the reasoning behind the delay in making the R1 million payment.
“This is neither extortion nor blackmail, but a true story of how racist and patriarchal society has become in oppressing and abusing women in business.
“The question that still stands is: did I invest the R2 million to Medbond?
“If yes, when is MedBond paying back my money? The truth is that I have been waiting for three months now.
“Out of frustration and desperation I have decided to go public, to the media, to expose this matter,” said Luthuli.
Reading the fine print
Asked for comment, Van Heerden said Luthuli failed to provide The Citizen with the terms and conditions of the contract.
“The terms and conditions specifically constitute the fact that the withdrawal will only take 30 international banking days from submitting the relevant documents.
“The client signed up online voluntarily on the advice of both her accountants and her lawyers.
“The allegation by Luthuli that the funds will be paid out within seven days is therefore false, untrue and malicious. The company furthermore reserves its rights in this respect,” Van Heerden said.
Van Heerden warned The Citizen against publishing Luthuli’s story, saying it would constitute “the crime of blackmail or extortion, as well as defamation”.
“The terms and conditions of the agreements are confidential and legally privileged.
“The last paragraph of your questions is untrue, seeing that Miss Luthuli purchased a property in the Western Cape with the funds.”
The Financial Sector Conduct Authority (FSCA) in August announced the provisional withdrawal of the MedBond Markets (Pty) Ltd and MedBond Insurance Brokers (Pty) Ltd licence – warning the public against conducting financial services business with MedBond Fund Managers (Pty) Ltd and Masjamplan (Pty) Ltd.
“The Financial Sector Conduct Authority brings to the urgent attention of the public the fact that the authorisation of MedBond Markets (Pty) Ltd (MedBond Markets) and Medbond Insurance Brokers (Pty) Ltd (Medbond Insurance Brokers), to act as financial services providers (FSP) have been provisionally withdrawn with immediate effect, warned the FSCA.
“MedBond Markets (license number 50113) was authorised as a category 2 FSP and MedBond Insurance (license 48544) was authorised as a category 1 FSP.
“The decision to provisionally withdraw the licence follows after the FSCA received complaints from investors regarding the status of their investments with MedBond Markets and Medbond Insurance Brokers, which led to an investigation of MedBond Markets and MedBond Insurance Brokers.
“The investigation is ongoing. But at this stage the FSCA has material concerns about MedBond Markets and MedBond Insurance Brokers.
“The FSCA has decided to provisionally withdraw the FSP licences of MedbBond Markets and MedBond Insurance, as it reasonably believes that substantial prejudice to clients or the general public, may occur if these licences are not provisionally withdrawn.
“The FSCA further warns the public to be cautious when conducting financial services with MedBond Fund Managers (Pty) Ltd (MedBond Fund Managers) and Masjamplan (Pty) Ltd (Masjamplan).
“Members of the public should always confirm that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services and what category of advice it is that the entity is registered to provide.
“The FSCA reminds customers who wish to conduct financial services with an institution or person, to confirm beforehand with the FSCA on either the toll-free number 0800-110-443 or on the website – whether such institution or person is authorised to render financial services.“