Mail & Guardian Online - May 3, 2008
Sello S Alcock

Imuniti Holdings, founded by Jan Gouws, John Ellis and Hans Wessels, was listed on the Johannesburg Alternative Stock Exchange (Alt-X) in December 2006.

Imuniti began selling R180 packs of nutritional supplements it claims "promote the functioning of the immune system".

Superintendent Japie Pelser, of the police's commercial crimes unit, confirmed that he is investigating a case of fraud against the trio.

The case centres on allegations that the three diverted R30-million from the company to their own personal trusts.

Three independent sources confirmed that a forensic audit -- conducted as part of the police investigation -- found that a R30-million investment was diverted into three trusts belonging to the men. The investment came from Investec and was deposited into Wessels's law firm's trust account.

Confirmation of the transaction also came from email correspondence in the Mail & Guardian's possession, in which Wessels refers to the transaction.

In the email, dated July 2006, he writes: "I want to bring it to your attention that I am not satisfied with the R30-million transaction that I helped Imuniti with."

In another leg to the fraud case the three men are being investigated for making a false announcement about orders for the Imuniti pack to prop up the share price. Documents in the M&G's possession indicate that Ellis and Gouws used another of their companies, Edge to Edge, to place a substantial order with Imuniti. The share price jumped significantly -- and then the order was withdrawn.

Wessels has denied all allegations. He said this was just an attempt "on the part of wrongdoers" to draw attention away from their activities. He promised to reveal the identities of the alleged "wrongdoers" in due course.

Documents show that Imuniti persuaded Cosatu's investment arm, Kopano Ke Matla, and the ANC Women's League-linked development trust, Malibongwe, to come on board as broad-based black economic empowerment partners.

The trio asked the empowerment partners to provide government letters of support.

These were to indicate that the authorities would make the packs available to patients receiving treatment through the state's antiretroviral treatment campaign.

Imuniti announced recently that it had signed a memorandum of understanding with the African Forum, a group of former African leaders, of which Nelson Mandela is reportedly a patron, for the company to supply packs for developmental purposes throughout Africa.

But the government letters could not be obtained because the product is untested. In the documents provided as prelisting requirements, Imuniti promised to run clinical trials in conjunction with the Medical Research Council (MRC).

Gilbert Matsabisa, director of the MRC's indigenous knowledge systems programme, said the MRC's ethics committee has only given the initial go-ahead. In the absence of medical approval the company cites "anecdotal evidence" for the product's effectiveness. The partners still maintain that the pack has boosted the immune systems of HIV/Aids sufferers, based on "preclinical trials" in Lesotho and Namibia.

The online version of the Business Report recently reported that Wessels and his partners have since asked for shares to be returned because the empowerment groups have not delivered on pledges of government support.

The company has since run into difficulties, with various parties suing for non-payment. In what observers say might be the worst performance in the history of Alt-X, the share crashed from its initial value of R1 to between 6c and 8c. Ellis and Gouws, via Edge to Edge Global Investments, are now trying to get a private placement for US$100-million on the Dubai Stock Exchange.

The director for corporate finance at Deloitte in Dubai, Nevin Hendricks, confirmed the move, adding that more information is being sought as part of a due-diligence process.

The men have a chequered history. Newspaper reports indicate Wessels was allegedly sequestrated in the 1990s and rehabilitated in 2004. Documents show that Ellis was convicted of fraud in 2000 and sentenced to 40 months in prison or a R8 000 fine.

Ellis and Gouws threatened to bring a prepublication interdict against the M&G in response to questions emailed to them, saying they had not had time to answer them. More than two weeks has since elapsed without any response.

Ellis is understood to have resigned from Imuniti before the listing, but still lists himself as a director of Edge to Edge Global Investments for the Dubai placement.

Malibongwe's Bertha Gxowa told the M&G that she has been out of touch with the company. Attempts to reach Kopano Ke Matla's chief executive, Collin Matjila, failed.

Investec declined to comment, citing client confidentiality.

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