Cape Town - The file in the case of the Registrar of Banks vs Net Income Solutions CC and three others had "disappeared" on Tuesday.
The case in which Defencex boss Chris Walker had to defend his company Net Income Solutions against allegations of taking deposits from the general public in contravention of the Banks Act was in front of Western Cape High Court Judge Patricia Goliath.
Arriving with his defence in the morning, Walker, dressed in a grey shirt and black trousers, looked calm and confident as he entered the court.
But he soon started to show nerves, pacing back and forth as he awaited for Judge Goliath to appear.
Once the case was called, Walker remained outside courtroom 17 while his case was briefly heard. He had however denied breaching the Banks Act in an affidavit filed before the court.
A query from Fin24 about a notice posted on the Defencex website cycle4dollars on the court proceedings, and a request for the affidavit filed by Walker led to the discovery of the missing case file.
By 17:00 the file was still missing and the contents of the notice could not be verified.
The notice read:
Update on court proceedings
"The provisional order granted by the court had to be answered by 26 March 2013.
"An extensive affidavit was filed on behalf of the first and second respondents (Net Income Solutions and Christopher Mark Walker)
"In view of the substance of the opposing affidavit the Reserve Bank had to file a replying affidavit.
"In order to ensure that Net Income Solutions case is placed before court in a well informed and proper manner the Reserve Bank agreed that the matter be postponed to a later date.
"In the interim a future affidavit will be filed of (sic) behalf of Net Income Solutions and Chris Walker. Where after the Reserve Bank will be afforded an opportunity to reply thereto.
"We will keep you posted of any developments."
Revenue sharing plan
The case stems from a High Court order on February 28 to freeze the bank account of Net Income Solutions, trading as Defencex, because of its deposit-taking activities.
In terms of the Banks Act, only banks, collective investment schemes and brokers through a brokerage account are authorised to take deposits.
The Defencex scheme, described as a new revenue sharing plan, was launched on 21 April 2012 via cycle4dollars, and promised investors R2 a day for 75 days on positions of R100.
Scheme members could earn 10% commission on all the positions they purchased through direct referrals, and 5% commission on all the positions their second-level team members purchased.
They could cash out once they had a minimum balance of R200.
Members of the scheme deposited an estimated R500m in the Standard Bank account. There was R320m in the account when it was frozen.
Net Income Solutions is a closed corporation with Walker as the sole member.
The appearance on Tuesday was to show the court good cause why the interim order (freezing the bank account/s) should not be made final.
Walker filed his affidavit on Tuesday.
The court extended the interim order until 5 June and Walker will file a supplementary affidavit on or before 16 April .
The South African Reserve Bank must then reply to the affidavits filed on Tuesday and in April on 10 May.
I want my money back
Meanwhile, Defencex investors are worried about their money they "invested", some of them hours before the bank account was frozen.
A Fin24 user, who does not want to be named, said he borrowed money to join Defencex. He wrote: "I want my money back if this is against the law of the government. I am from the rural areas, I know nothing about investments. No government institution is teaching us about that there. Can you help?"
Another asked if there is any possibility for people to ever get back their money and yet another posted on Facebook: "Can't they at least release our money while they still filing affidavits... just saying."
A die-hard Walker supporter wrote: "Today we are going to know how our lives are going to change and I hope Chris and his legal team will do everything they can for us South Africans who are poor.
"He is our hope in this so called South Africa of ours we love so much but live in poverty...
"May God be with you and claim victory, not just for yourself but also for us who need Defencex to operate again."
Picture: Chris Walker about to enter the Cape High court, followed by his legal representatives.
(Nielen de Klerk, News24)
The case in which Defencex boss Chris Walker had to defend his company Net Income Solutions against allegations of taking deposits from the general public in contravention of the Banks Act was in front of Western Cape High Court Judge Patricia Goliath.
Arriving with his defence in the morning, Walker, dressed in a grey shirt and black trousers, looked calm and confident as he entered the court.
But he soon started to show nerves, pacing back and forth as he awaited for Judge Goliath to appear.
Once the case was called, Walker remained outside courtroom 17 while his case was briefly heard. He had however denied breaching the Banks Act in an affidavit filed before the court.
A query from Fin24 about a notice posted on the Defencex website cycle4dollars on the court proceedings, and a request for the affidavit filed by Walker led to the discovery of the missing case file.
By 17:00 the file was still missing and the contents of the notice could not be verified.
The notice read:
Update on court proceedings
"The provisional order granted by the court had to be answered by 26 March 2013.
"An extensive affidavit was filed on behalf of the first and second respondents (Net Income Solutions and Christopher Mark Walker)
"In view of the substance of the opposing affidavit the Reserve Bank had to file a replying affidavit.
"In order to ensure that Net Income Solutions case is placed before court in a well informed and proper manner the Reserve Bank agreed that the matter be postponed to a later date.
"In the interim a future affidavit will be filed of (sic) behalf of Net Income Solutions and Chris Walker. Where after the Reserve Bank will be afforded an opportunity to reply thereto.
"We will keep you posted of any developments."
Revenue sharing plan
The case stems from a High Court order on February 28 to freeze the bank account of Net Income Solutions, trading as Defencex, because of its deposit-taking activities.
In terms of the Banks Act, only banks, collective investment schemes and brokers through a brokerage account are authorised to take deposits.
The Defencex scheme, described as a new revenue sharing plan, was launched on 21 April 2012 via cycle4dollars, and promised investors R2 a day for 75 days on positions of R100.
Scheme members could earn 10% commission on all the positions they purchased through direct referrals, and 5% commission on all the positions their second-level team members purchased.
They could cash out once they had a minimum balance of R200.
Members of the scheme deposited an estimated R500m in the Standard Bank account. There was R320m in the account when it was frozen.
Net Income Solutions is a closed corporation with Walker as the sole member.
The appearance on Tuesday was to show the court good cause why the interim order (freezing the bank account/s) should not be made final.
Walker filed his affidavit on Tuesday.
The court extended the interim order until 5 June and Walker will file a supplementary affidavit on or before 16 April .
The South African Reserve Bank must then reply to the affidavits filed on Tuesday and in April on 10 May.
I want my money back
Meanwhile, Defencex investors are worried about their money they "invested", some of them hours before the bank account was frozen.
A Fin24 user, who does not want to be named, said he borrowed money to join Defencex. He wrote: "I want my money back if this is against the law of the government. I am from the rural areas, I know nothing about investments. No government institution is teaching us about that there. Can you help?"
Another asked if there is any possibility for people to ever get back their money and yet another posted on Facebook: "Can't they at least release our money while they still filing affidavits... just saying."
A die-hard Walker supporter wrote: "Today we are going to know how our lives are going to change and I hope Chris and his legal team will do everything they can for us South Africans who are poor.
"He is our hope in this so called South Africa of ours we love so much but live in poverty...
"May God be with you and claim victory, not just for yourself but also for us who need Defencex to operate again."
Picture: Chris Walker about to enter the Cape High court, followed by his legal representatives.
(Nielen de Klerk, News24)