THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
Question 33
Mr T D Harris (DA-WC) to ask the Minister of Trade and Industry:
(1) Whether, with reference to a recent media report alleging that the
Companies and Intellectual Property Registration Office (CIPRO) has
been used to defraud certain companies (names and details furnished-
See attached) through the registration of duplicate companies and fake
company directors, any action has been taken; if not, why not; if so,
(a) what action, (b) which companies have complained about duplicate
companies or fake company directors and (c) against which CIPRO
officials was action taken;
(2) Whether any steps will be taken to address these problems; if not,
why not; if so, what steps;
(3) Whether CIPRO will provide the name or names of person or persons
responsible for deregistering the legitimate directors of BLSA
Industries on 8 April 2009; if so,
(4) Whether any disciplinary action has been taken in this regard; if
not, why not; if so, (a) what action and (b) what are the further
relevant details? CW45E
Response:
(1)(a) CIPRO became aware of the fraudulent registration of duplicate
companies and fake company directors in January and February 2009 and
took a decision to terminate the electronic lodgement of changes.
The electronic lodgement of requesting an associated name of an
existing company/close corporation was terminated and a Practice Note
No. 5 was issued informing clients of the new procedure.
(1)(b) CIPRO is not in a position to provide information until the
investigation process is completed.
(1)(c) Based on the outcome of a preliminary investigation into
possible fraudulent activities, five (5) CIPRO officials were
suspended, pending the completion of a full investigation.
Further internal investigations are underway to identify perpetrators.
Three agents who registered these entities were identified and found
not to be working for CIPRO. Their details were handed over to the
SAPS and a criminal case was opened.
(2) A verification process for any amendment on directors of a company
was implemented and strict controls were implemented in the electronic
lodging of changes of directorâs information.
Additional documentation is also required from applicants in lodging
name reservations relating to existing companies.
(3) CIPRO is not in a position to provide more details relating to
specific fraudulent activities at the moment as it might jeopardise
the investigation.
(4) Based on the outcome and recommendations of the full investigation,
action will be taken in terms of the disciplinary procedures of CIPRO
in line with the Public Finance Management Act and the Public Service
Code of Conduct Procedures. As allegations in this matter are also of a
criminal nature, CIPRO will proceed with criminal charges against
perpetrators in addition to the internal disciplinary steps.