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Rudco has failed to show the regulator that it has begun returning money received from clients. Rudco had taken payments from clients before housing loan arrangements had been finalised with the issuing banks, which is illegal.
Advocate Jan Augustyn of the investigations and prosecutions department of the NCR says he's not convinced that anybody has received their money. "We have asked consumers to inform us should they in fact get their money in order for us to verify if Rudco is at least attempting to comply."
Front company exposed
In other developments, Rudco has been positively linked to the Intel Property Group, which hosted a launch event to 50 franchisees at a Cape Town hotel on Monday night. Fin24 has been able to ascertain that the fee to become a franchisee of Intel ranges between R350 000 and R500 000.
Any doubt that the two businesses are directly linked have been laid to rest as the contact person for Intel Property group has a Rudco e-mail address.
Rudco Finance staff members did not answer calls when Fin24 contacted them for comment.
The potential franchisees' stay at a local hotel in the CBD was partially subsidised by the event's organisers, who have direct links to Rudco Finance. At least 50 franchisees attended the swanky affair, once they had paid their deposits to become franchisees.
Still not paid
Regarding the repayment of clients, Augustyn says there are at least 82 cases of non-payment that the regulator is aware of, as these people have contacted the NCR.
Rudco has maintained from the beginning of the process that it has the money to pay those loans, yet it appears that Rudco cannot repay consumers - even after some time has lapsed.
"The fact is it has taken money from consumers without providing the loans," says Augustyn.
Rudco management is aware that there is a court order in place, and the company has been warned by the National Consumer Tribunal of the consequences of non-compliance with the order, says Augustyn.
- Fin24
