Online petition to ASIC, page-8

Additional wording for anyone to use when sending to ASIC, or in particular the AFSC the South African Regulator; I am happy for anyone to use any or all of the below; https://www.fsca.co.za/Customers/Pages/Complaints-Compliments-Feedback.aspx

The partition is going well, and this will open the dooor for ASIC, so please send around to friends and family to sign;

SASFAS (South African Scheme to Fleece AustralianShareholder)

Dear President Ramaphosa, Minister Mantashe, ASIC, FSCA, McGrath Nicol, Global Corporate Solutions (GCS) et al.

I bring your attention to the national development plan 2030-moreover to page 55 of 70 of the executive summary. I allege South African companies have taken Australian shareholder money for their own benefit.

Considering the South African Governments national plan and critical goals being;

14. Ensure domestic security of coal supply for existing power stations through industry compact, more comprehensive coal field planning and opening the Waterberg for coal mining.

15. Invest in a new heavy-haul rail corridor to the Waterberg coal field, upgrade the central basin coal network and expand export capacity in the line to Richards Bay

Both of these goals have been addressed by Australian shareholders that have funded a project via Resource Generation, notably supporting a BEE partner with the 26% opportunity in the process and following all other South African requirements, licensing along the way and supporting local employment with infrastructure already in place.

Whilst here in Australia we watched the address of the South African president at the 4^th South African Investment Conference that discussed how to stimulate investment and the economic development of South Africa. I was very impressed and couldn’t agree more with your points and the intent of the conference. I noted the national priority to stimulate local and foreign investment in strategic projects such as the energy security.

Separately I am an active shareholder in a listed company- Resource Generation (ResGen). Resource Generation are listed on the Australian and Johannesburg Stock Exchanges and have the rights for the development of significant coal resources in Boikarabelo/Waterberg that has been identified as the next set of coal resources to be developed for Energy security. We shareholders have invested significantly over many years to realise this opportunity and we consistently support the development of these strategic coal reserves. We have collectively invested heavily to enable this great project to be activated and contribute to South Africa’s future.

Resource Generation have several major South African shareholders- PIC, Noble & Altius (Related parties) plus many shareholders in Australia and elsewhere. It is alleged these related parties as set out in the 2015 complaint of shareholders/directors in the Australian Takeovers Panel have collectively conspired to nationalize the project, with support from the IDC and incoming domestic company to purchase the project ready ResGen at a highly discounted price at a time when projects are selling for a premium due to coal prices. Shareholders experienced unhanded tactics from PIC to sell their shares (insider trading which has been reported to directors of ResGen) and many other anomalies outlined in our dossier.

Recently Resource Generation went into Administration in what appeared to be very unusual circumstances that could otherwise have been a positive outcome considering small scale mine and other options available at the time. The company was at the point of confirming loan agreements and commencement of mining when it went into Administration via the untimely and yet convenient withdrawal of IDC to remove funding in the week all conditions precedent were complete. Although this orchestrated plan supported local entities wishing to profiteer (corruption), it goes against all moral values and international relations.

We feel that there is a real risk that the rights and work to date are passed on to new shareholders and investors without regard or reasonable compensation for the investment we Australian shareholders have made. Indeed, we feel the project could be salvaged as all the structures, agreements and infrastructure are in place and ready for activation. Insolvency and liquidation will result in legal challenges that potentially delay the development for many years which is not in South Africa’s strategic and economic interests.

We would appreciate your support to look into this matter as we also feel this outcome will set a poor precedent and example of how foreign investment in South Africa is attracted, managed and dealt with.

The Precedent that has been set in the form of a SASFAS 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. Particularly if the ASX listed owns an asset in another country. Notably Resource generation owns the entire asset in South Africa.


Let's consider an Australian listed company, that owns a Lithium, coal, gold or Rare Earth mine in Africa. If the company owns assets outside of Australia then you risk losing all your investment if the company is pushed into administration through any means (outlined below).


Typically the ASX listed owns shares (at times 100%) in a company that is registered in the overseas company that owns the mine/project. This company can orchestrate an unfortunate event (outlined below), to make it look legitimate. In our case we can evidence how protecting shareholders value in the company was in fact, ignored, and although pleaded with, continually brush under the carpet. All warning signs were shown to the company on more than 20 occasions, and yet directors never provided a plan B, C or D. There was a reckless and obvious means to sabotage efforts to progress. i.e. protocols were understood, but played out in an incorrect order and manner, incongruent with responsible managers.


Once in what we allege as deliberate administration. The failed overseas project which would then be regulated by the overseas country has to adhere to the overseas administrators, ignoring Australia regulations. For Australian shareholders, this meant, the sale of the asset was both restricted to domestic and local companies and without a view to return any value to shareholders. In fact, South African administrators closed expressions of interest prior to the point that official announcements were made to ASX to suggest the existing DOCA was no longer valid. South African administrators were in fact selling and closed expressions of interest on an asset that was in a DOCA arrangement.

Australian Administrators had little interest in following up the sale of the asset, and for their own benefit only addressed interest in selling the shell company to cover their fees. This questions, who in fact was in control and who was in fact selling the assets value, and what market was approached to get the best value from an asset that was shown to shareholders at US$200M. Albeit, was this fabricated for shareholders benefit to continue on this scam?


In this case of RES, the scheme can circumvent strict Australian regulations and follow loose and corrupt laws that may be in the jurisdiction of the country of your project -being South Africa. What does this mean? Why should any asset then be allowed to be listed on the ASX knowingly understanding that there is no regulation/control?


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 through the use of an unfortunate event such as; not giving licenses, contracts, finance, or any other means to stop progress.


Therefore overseas companies can list on the ASX, collect ASX funds from Australians, spend years of money to be production ready, then force these companies into liquidation by an unfortunate event (in the case of RES – by not following protocol or expected business procedures, and then buy them for huge discounts.

The real issue, and flaw in this process; then is the lack of care displayed by liquidators which enables this scheme. As shown in the RES case, they have the sole focus of collecting their fees with as little genuine work as possible. The ability to review detail has been pushed aside with generic return responses and lack of reporting to ASIC. It has been obvious, as shown in my history and claim document that business protocols of failing to enact plan B and C have not been met. In all instances, RES was set up to fail, and this if placed with administrators is allowed to continue, as the administration process as no meaningful manner in which a shareholder can voice concerns. Shareholders that are not a creditor so must accept the outcome which stripes all their rights, particularly in the case of minority shareholder oppression.


Further, overseas administrators; They do not have to seek a fair price and can simply sell the projects to themselves or associates domestically, rather than seeking an appropriate purchaser. Please also note; this event was completed secretly without any ASX recognition and completed whilst ASX shareholders were coerced by LURCO (South Africa company), that they were the knight in shining armour. Another under handed tactic.



We need regulation inside Australia, immediately, that gives power to ASIC to control Australia assets that are registered overseas. ASIC must implement controls/regulations on Australian administrators to do what is fair and reasonable for shareholders and not turn a blind eye to cut costs, and place this under the banner of ‘only dealing with creditors’. As in this RES case, it is the creditors that supported this failure of RES for the benefit of their associated parties.

This practice/scam is currently being undertaken by South Africa companies to Australian shareholders in ResGen. I understand this is a flaw in the system and must be supported to stop further SASFAS scams.

Shareholders are currently signing a petition to gather momentum around this alleged corruption, to support the view of community involvement requested by ASIC.

Please feel free to ask me any questions and I and my fellow shareholders will be pleased to assist wherever we can to ensure you have whatever information you may need.