SAS to FAS scam(South African Scheme to fleece Australian Shareholder Scam)
If you are a shareholder that has invested your retirement money or savings into what you believed was company that was under Australian regulations you may be wrong.
Let's consider an Australian listed company, that owns a Lithium, coal, gold or Rare Earth mine in Africa.If your company owns assets outside of Australia then you risk losing all your investment. Why?
Typically the ASX listed owns shares (at times 100%) in a company that is registered in the overseas company that owns the mine. This company can simply run itself into the ground, and can orchestrate a failure to make it look legitimate (as shown below).
The failed overseas project which would then be regulated by the overseas country has to adhere to the overseas administrators, ignoring Australia regulations.
In this case, it can circumvent strict Australian regulations and follow loose and corrupt laws that may be in the jurisdiction of the country of your project. What does this mean?
As the assets such as a mining project, it can then be sold inside that country without any regulation from Australian authority at a value which is heavily discounted to local/domestic companies. They can manipulate your investment into liquidation by not giving licenses, contracts, finance, or any other means to stop progress.
Therefore overseas companies can list on the ASX, collect ASX funds, spend years of money to be production ready, then force theses companies into liquidation, and then buy them for huge discounts.
They do not have to seek a fair price, and can simply sell the projects to themselves or associates.
We need regulation inside Australia, now, that gives power to ASIC to control Australia assets that are registered overseas.
This practice/scam is currently being undertaken by South Africa companies to Australian shareholders in ResGen. Is your investment next?
Comments and Feedback welcome, ASIC have asked us to get Community traction, to support their investigation.
I am happy for anyone to reword. This is credited to
@Comptonfarm
