The South African Reserve Bank (SARB), as part of its mandate in terms of the Banks Act, 1990 (Act No. 94 of 1990), appointed Ernst & Young (EY) in September 2014 as temporary inspectors to conduct an investigation into the business activities of Carmol Distributors (Pty) Ltd, Mr. Yunus Goolam Moolla, and Ms. Fathima Carawan and/or any related person or entity (“Carmol”).The investigation concluded that Carmol Distributors contravened the Banks Act, 1990 (Act No. 94 of 1990), by conducting the business of a bank - accepting deposits from the public - without being registered as a bank. The SARB subsequently directed Carmol, Mr. Moolla and Ms. Carawan to repay the money unlawfully obtained by them, and appointed repayment administrators from KPMG to manage that repayment process. Carmol, Mr. Moolla and Ms. Carawan have not complied with this directive and the SARB has initiated legal processes for the liquidation of Carmol and the sequestrations of Mr Moolla and Ms Carawan.A High Court order was granted on 1 October 2015, placing Carmol under provisional liquidation. Carmol is however opposing SARB’s application for liquidation and the matter has been postponed for hearing at the end of November 2015. The SARB is not aware of the current location of Mr Moolla and Ms Carawan and formal service of the sequestration applications has yet to be effected. Carmol investors can contact KPMG on the dedicated telephone number: 0800 555 836. Issued by:Hlengani MathebulaHead: Group Strategy and Communications