Coert Coetzee, the flamboyant property developer of Somerset West, who founded one of the country’s largest and most controversial property schemes worth about R5bn, is not only the target of some of Treoc Capital’s creditors, but is also heading for a full-scale conflict with one of his former business partners.
Coetzee and his right-hand man, Ian Deyzel, were recently summonsed to testify in the Bellville civil court in a liquidation inquiry into what went wrong at one of the approximately 23 Treoc-affiliated companies, namely Treoc Capital. In a previous inquiry, Treoc Capital was described as a pyramid scheme.
Finweek found out from some of the creditors that Coetzee and Deyzel had tried for months to escape last week’s “open inquiry”. Even a matter of days before the inquiry was to take place last week, representations were being made to try to avert it.
Liquidator Ryno Engelbrecht argued that the object of the inquiry was to determine whether certain creditors benefited from repayments prior to the liquidation of Treoc Capital. One of the creditors of Treoc Capital, which received a repayment of about R550 000, while others weren’t paid, was in fact Treoc Limited – for which Coetzee is deemed to be the alter ego.
In the court, Coetzee accepted no blame for what went wrong at Treoc Capital, placing all the blame instead on Jose Delgado, his former business partner. “We dismissed Delgado because of his general slackness,” Coetzee said.
Deyzel and Coetzee gave vague replies to questions about whether some creditors were “paid back” with other creditors’ money. Certain questions were answered with: “Put it in writing and I’ll find out from the auditors. I am not an accountant.”
Coetzee said he specifically asked Delgado, who initially also acted as legal adviser for the Treoc groups, whether Treoc Capital’s business practices were legal. Delgado said that he had conducted a due diligence investigation at companies similar to Treoc Capital – which also earned interest on bridging capital – and that everything was above board.
Coetzee insisted that he did not work for Treoc Capital and that he had resigned as non-executive director in April 2007. He explained that he had still signed Treoc Capital’s financial statements in April 2008 because this was another task that Delgado had not performed by reporting his resignation to the Cipro company registrar in 2007. He was therefore forced to sign the statements in 2008.
In reply to questions by Advocate Daniel Malherbe on behalf of the creditors about whether Treoc Capital was registered as a bank, as a credit provider or with the Financial Services Board, Coetzee answered no every time.
Coetzee testified that Delgado was a legal adviser and an expert on commercial matters “and I accepted his legal knowledge”.
“Now we are arguing more than ever,” Coetzee said in reply to questions about what led to Delgado’s dismissal from the larger Treoc group. “It was about his working methods, that he failed to keep promises and general slackness,” Coetzee said.
“I want it placed on record that I was not happy that outside people could make loans to Treoc Capital on which they could earn 2% a month,” Coetzee said.
He accepted no blame for anything and said: “I did not work for Capital – so charge me for neglecting my fiduciary duty, because I know nothing.
The commissioner at the inquiry, Warno Steenkamp, approved a request by the liquidators that Delgado must also be summonsed to testify under oath. A date for Delgado’s appearance is now being decided on.
Meanwhile, a war of words via email has broken out between Coetzee and Delgado, in which Coetzee reminded Delgado about certain matters that had been set out in writing, especially if there should perhaps be “subsequent legal action”.
The ongoing liquidation inquiry into Treoc Capital follows questions that have been asked for years in the market about how, through his “Treoc Way” approach to property investment, Coetzee can enable entry-level buyers to buy as many as four properties at the same time.
The aim of the “Treoc Way” is to persuade buyers and others to use trusts, set up by the Treoc network, to acquire several properties that are financed by different banks. The mortgage loans are largely repaid through rental income, while the founder of the trust must pay the balance.
After the recent inquiry, Coetzee told Finweek Treoc is still faring excellently, and his investment seminars, which attract hundreds of people, are also doing very well. “No, I’m not heading for Australia; my roots are here,” he said in reply to a question about extending his concept overseas.
Jacques Dommisse
investigations@media24.com
I would just like to put everything into perspective here. I am one of the investors, and I lost all my money, and it has ruined my life. I have nothing left, and I have to rely on others to support myself. I want everyone to know the following regarding the matter:
We did not just invest in a random company. I did my research. I was a member of the TREOC club for 2 years before I invested any money in Treoc capital. During my initial period at TREOC, they helped me to buy property, and it went well. So after 2 years, TREOC approached me, and asked if I want to invest in the new division of the company.
I was very skeptical, but during my time at TREOC, I gained trust in them, more particular Coert. I made it very clear that I am not looking for a high risk investment. That this is my life savings. They assured me that according to the contract nothing can happen to your initial capital, and if it does, it can be reclaimed.
We were told that the money we are investing will go to property buyers and be incorporated as a short term loan, to pay for deposits etc. If by any chance that anything would happen, which they said is highly unlikely, the money is in the property that was invested in, so one could reclaim that property and retrieve your initial capital.
So I thought ill give it a go, initially I put in a small amount, and it went great! each month I would get my statement saying that my investment had increased by x amount. After trying this investment for a year, and my capital just increasing, only then I invested the majority of my saving in the company.
Well, to make the rest of the story short, they never invested my money; they rather used it to pay out other investors as well as themselves.
Coert acts like he has nothing to do with this, but that is not true at all. I was told that Coert was the director of this company, so I thought my money would be safe with this property giant. I invested my money with Coert, TREOC (spelled backwards). We as investors were not even aware that he resigned as managing director in 2008, as he claims.
All we want is to have justice done. We were lied to. Lost everything. I just want a normal life. Nothing extravagant. I just want to be able to pay my daily expenses. I can’t even do that. I have to rely on my parents, I am a grown man, having to do that is so humiliating.
Coert is a very wealthy man, as he so clearly states. All I want is the money back I invested. He can afford to pay it back. It will do nothing to his pocket. Instead, here I am, not being able to take care of myself.
I agree with ex Treocian, I heard the same piece of wisdom at a Treoc seminar. But who are we fooling? The Treoc Way teaches you to move all your assets, making you a pauper….and then you defraud the bank by standing surety while you own nothing. Investor is however detracting from the real issue, Treoc Capital. Platteland hits the nail on the head and there is a lesson here: beware of soft speaking, Armani suite wearing dominee like figures….these guys have no conscience and in my opinion are giving the whites and particularly Afrikaners a bad name, something the Afrikaner does not deserve. We do not need another Herman Pretorius with an arrogance and vanity so huge that he calls his alter ego his name spelled backwards.
INVESTOR can only be a Treoc director or employee. When I attended a Treoc seminar Coert made it very clear that you can apply for four bonds at the major banks simultaneously using the same salary since the banks “don’t talk to each other” and will therefore not know about the other bonds you have applied for. Ask a young fellow Werner Brits in Cape Town if you don’t believe this, and there are many more ex-Treocians who have been sequestrated since they could not handle the shortfalls when interest rates rose and rentals remained static. Go smoke your socks Investor!
Treoc does not provide you with finance to be able to own more that 1,2,3 or 4 properties. Your finance is approved by YOUR financial institution, not by Treoc. Your affordability is not calculated by Treoc, it is calculated by YOUR financial institution! So if you claim that Treoc is illegal….then surely ALL banks are illegal? Treoc purely provides you with the tools to be able to protect your hard earned assets!
I have attended one of these seminars and this just irks me since this Coert character had the gall to conduct business with the Bible under the arm, yet he was fleecing the public. he even has a little e-newsletter where he lambastes other companies for stealing pensioner money legitimately, ie: “pension schemes” and now look at this!!!!
At last! After all the denials the chickens are coming home to roost! I hope the creditors get their money back…apparently most of them are pensioners who trusted these gents. Why would anybody still attend a Treoc seminar with this going on? Last year Coetzee published an article The Truth About Treoc, maybe he should read it again.