Court dispute over e-tablets

Company ‘fraudulently diverting payments’

EAST London-based Synergies Platinum has been signing up low income clients for “lay-by” purchases of electronic tablets valued at about R2 400.

But now the company has been accused of fraudulently diverting the monthly lay-by payments by clients into its own account rather than passing it on to its Mossel Bay business partner, Glotrade.

Glotrade has the licence to supply the T-Roid range of tablets and appointed retail agents, including Synergies, based in Beacon Bay.

People purchasing on lay-by agree to pay a monthly amount via a debit order and receive the product once the total purchase price has been paid.

Glotrade and Synergies Platinum agreed in October last year for Synergies to act as an agent for the applicant in signing up purchasers on behalf of Glotrade. This agreement was intended to be in place until the end of February this year, by which time Synergies would do business independently as a direct seller to the public of electronic tablets.

But Glotrade brought an urgent application in the East London High Court this week, alleging that Synergies had not disclosed the full number of purchasers it had signed up before February. Neither had it signed up new purchasers from March 1 this year using its own documentation.

Instead, it had continued to use Glotrade’s forms, while allegedly allowing debit order payments to go into Synergies’ bank account.

Glotrade director Neil Ferreira said clients were under the impression they had contracted with Glotrade and had contacted the company to demand delivery of products once the lay-by was paid up.

He said Glotrade had no knowledge of such contracts and not had received any payments for the product claimed.

Other clients had cancelled their agreements but Glotrade was unable to cancel a contract of which it was not aware, nor could it refund any money which it had not received. “The effects of an unauthorised debit order … will have a significant impact on the client and his family.”

Synergies MD Johannes Janse van Rensburg said his firm had conceived the idea to market and sell electronic equipment on a lay-by basis.

He said Glotrade was only a supplier to Synergies and had initially assisted with administration issues until Synergies could take over the administration, including having its own bank account and debit order processes in place.

Ferreira said he had been advised that Synergies’ conduct in accepting lay-by payments into its own bank account constituted fraud.

The matter has been postponed to August 20 this year. — rayh@dispatch.co.za