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The Bead Coalition (Pty) Ltd

Tangible Commercial Philanthropy Since 2011

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Rhino Force Statements

Rhino Force Statements

A TOTAL OF R4,832,997.59 RAISED FOR CONSERVATION

These are the amazing conservation projects that RHINO FORCE has supported to date:

• A total of R4,832,997.59 raised to date - including Rhino Force’s facilitation of a R1,080,000.00 donation for the Africa Foundation Trans-location - and various donations to The Endangered Wildlife Trust.
• RHINO FORCE is a commercial company, not an NGO.

STATEMENT IN RESPONSE TO 50/50 BROADCAST DATED 28 OCTOBER 2013

29 October 2013

To the public, our beneficiaries, our retailers and our loyal supporters, On 28 October 2013, the conservation show 50/50, which airs on SABC 2 broadcast a program about the sale of bracelets by Rhino Force and the allocations of funds. The program contained numerous factual inaccuracies and omissions concerning our business. It is thus our opinion that 50/50 are in breach of the Code of Conduct of the Broadcasting Complaints Commission of South Africa. They presented a programme in which controversial issues of public importance were discussed, without making reasonable efforts to fairly present our opposing points of view. Rhino Force is not an NGO but a registered company. No doubt many questions were raised throughout the interview. We played open cards with 50/50 and we had no issue disclosing to them what they requested.The interview was over one and a half hours and the omissions throughout have grossly impacted on our image. We shall take this opportunity to address the issues which 50/50 elected not to air in their broadcast. The following inaccuracies were levelled against us:

• ACCOUNTABILITY OF RHINOFORCE – 50/50 stated that they have viewed the financials of Relate and that they were open and transparent. They failed to mention that on three occasions Rhino Force offered 50/50 to conduct a forensic audit. 50/50 failed to take us up on the offer and also failed to mention in the program that we have made such an offer. Again we challenge 50/50 to conduct the forensic audit.
• FUNDS TO AFRICA FOUNDATION TRANSLOCATION PROJECT – 50/50 claimed that we had failed to make any further payments to AF since April 2013, however AF retained a balance of Rhino Force funds in their account for unexpected post translocation expenses. One authorisation was given by Rhino Force for replacement tracking collars after April 2013. On 18 September 2013 Rhino Force received a further request from AF for R 28,000.00 for HF radios, to be withdrawn from the balance of funds that AF hold. The translocation project was completed in May 2013. A new project has yet to be presented to Rhino Force therefore further funds cannot be donated without new project details in place
• ONE MILLION BRACELETS COMMENT BY CHRIS THORPE IN JULY 2013 – During an interview with 50/50 in July 2013, Chris made the statement that we were approaching one million bracelets sold. The interview was conducted on the basis that 50/50 approached us for a “Rhino Donation Fatigue” feature that Phillip Lennon was producing. We have always stated that our goal was to sell 1 million bracelets. That interview had nothing to do with the basis for the program that aired on 28 October 2013. Our website gives a weekly account of bracelets sold. 50/50 used parts of that interview to paint the picture that almost a million had been sold and yet our official count of the website is 622,994 Rhino Force bracelets. Again we offer 50/50 the chance to audit our financials. 50/50 also agreed during the interview to retract the 1 million bracelets sales statement, yet used the figure throughout the broadcast. We encourage people to view the recording of the interview (1:33:00 to 1:35:00) on YouTube.
• FUNDS RAISED – R 4 832,997.59 has been raised and PAID over to beneficiaries.
• SAVE THE RHINO INTERNATIONAL – 50/50 highlighted the point that this organization was an international NGO raising funds for rhinos all over the world. Our organization is worldwide, we sell bracelets in numerous countries. The use of funds to save rhinos all over the world is something that we are proud of. An association with an international organisation helps raise our international profile. 50/50′s argument is that South Africans would prefer to know that the funds are used solely for South African rhinos. By making use of an international organization, we are receiving sales from overseas as well. This is fully transparent on our website. Five species of rhino exist in the world – all of which are facing extinction. All rhinos need saving and the more international funding the better.
• ENDANGERED WILDLIFE TRUST – An amount of R 3 050 597.59 was donated to EWT throughout our relationship with them. Yet they have only accounted for an amount of R 742,673.50. A further R 2,207,924.09 has yet to be accounted for, taking into account the VAT deduction. 50/50 passed over this matter and failed to question or demand answers from EWT. For months we have requested EWT to show us where the funds have been allocated…they have yet to do so. We call upon them to show us the allocation of the funds. 50/50 also failed to mention that in December 2012, EWT and Rhino Force reached a settlement, and all funds due to EWT were paid over. EWT admitted such in the broadcast.
• USE OF EWT LOGO – all the funds raised from the products sold with the EWT logo were paid over to EWT. This is not in dispute. This matter has been put to bed. Needless to say that in May 2011 EWT stated in an e-mail “I presented your material to the executive and there is a strong feeling amongst the team that our logo be associated with yours. I think on this particular campaign it will in fact strengthen the campaign as many people are a bit suspicious of so many organizations that have sprung up.” Thus it was always the intention of the parties to carry the EWT logo.
• RELATE INTELLECTUAL PROPERTY DISPUTE – During the broadcast, Relate do not produce evidence to prove that we “stole” their idea. We have yet to receive a summons in this regard, which they claim they developed in mid-2010. The dispute is not pending before a court of law and we shall vehemently defend any action brought against us. For Relate to make such a suggestion without producing proof, speaks for itself, let alone that they have not pursued litigation for 3 years. 50/50′s failure to investigate or produce proof speaks volumes for the fairness relating to their broadcast. Relate have only now brought out a Rhino bracelet, in conjunction with EWT, the same organization who have yet to account for over R 2 200 000 in funds transferred by us.
• COSTS – 50/50 failed to show the breakdown of the operating / admin costs of the EWT during the broadcast, despite Rhino Force showing these details to them and despite the request that 50/50 show the EWT financials. EWT take over 30% of funds received for salaries. In the 2011 financial year, The EWT used over R 7 600 000 in salaries for only 76 employees. 50/50 tried to raise issues as to our transparency, yet EWT have not been transparent with regard to the allocation of funds received from Rhino Force. We have provided 50/50 with the independent auditors report of EWT done by Deloitte dated 2010 and 2011. 50/50 failed to raise any such issues. Between 2010 and 2011 EWT gave all employees a 17% increase. EWT downsized by 2 employees yet increased salaries by over one million rand. It is unreasonable to question our transparency, when the very organization that we funded over 3 million rand to, is failing in its transparency. Now EWT and Relate are proceeding on a new venture together with the use of their own Rhino bracelet. However, the beneficiary of their bracelets, the EWT, is yet to account for the funds that we donated to them. This is surely a question to be asked of Relate and EWT. How can they enter into a further relationship, with so many question marks still hanging over both their heads.
• COSTS OF BRACELETS – the costs of the bracelets (R 30 – previous price and R 40 current price)

BREAKDOWN OF COSTS PER BRACELET @R30.00 PER BRACELET

BREAKDOWN OF COSTS PER BRACELET @R40.00 PER BRACELET AS FROM LATE 2013

• WAGES TO BEADERS – 50/50 made much of the issue that an anonymous employee stated that she earned R 1.20 per beaded bracelet. This is taken out of context. Numerous stages are involved in the assembly of a bracelet. From bead quality control, string beading, closing, and packing, each function attracts an independent payment. The MRDP beading programme is paid R2.60 (as indicated above) per beaded bracelet. The MRDP employees earn between R 2400 – R 5000 per month. Over 90 (30 full time and 60 part time) woman have been employed through the Rhino Force bracelet campaign. 50/50 failed to take into account an explanation provided during the interview that detailed the accounting of each paid component of the assembly of a bracelet.
• RELATE – 50/50 failed to mention that since the sale of the first Rhino Force bracelet sold in 2011, Relate has done nothing up until now to raise an issue regarding the sale of Rhino Force bracelets. As at 9 September 2013, Relate and EWT entered into an agreement to sell bracelets. On Relates own version, they raised 5 million rand for United Against Malaria Bracelets over 4 years, as an NGO. Rhino Force as a company, has raised over 4.8 million rand in 2 years.

The failure to provide Rhino Force with a fair right of reply and the selective omissions by 50/50 is most disappointing. We have instructed Jurgens Bekker Attorneys to issue a complaint to the BCCSA and protect our legal rights. We shall not allow a great initiative that has taken hours of work, love and dedication to build, to be unfairly and unlawfully dismantled. It is our every intention to remain in the market as a symbol of hope. We have donated R4 832,997.59 to various Rhino causes. We challenge other businesses to show that level of fight towards the Rhino’s cause. We have created over 90 jobs and presently 622 994 people wear our bracelets, which creates invaluable awareness. We are doing our part, so why 50/50 would attempt to destroy a legacy that in only 2 years has raised so much funding for Rhinos is beyond us. It is so sad when competition in the market is the driving force behind this. 50/50 bias is evident in that their own staff have publicly come out to state that the public should rather purchase Relate bracelets. Far from being independent and dispassionate journalists, 50/50 have already picked their horse as even journalist Bonne du Bod and producer Philip Lennon were wearing Relate bracelets at the third interview. 50/50 elected to broadcast the Rhino Force program the day before Relate and EWT publicly announced their new relationship, wherein Relate will manufacture Rhino Bracelets. THIS WAS NOT DISCLOSED TO THE VIEWERS. It begs the question as to why the selective non-disclosure by 50/50. We are of the view that the broadcast was nothing more than an attempt to force a competitor out the market. The timing of the broadcast in relation to the statement by EWT and Relate, the discrediting of our company and the public endorsement of Relate by employees of 50/50 gives the indication that it is not only an attempt to force out a competitor but also an unethical marketing campaign. Prior to 50/50′s broadcast, Rapport published an article dated 27 October – 2 November 2013, entitled Renosters: Bandjies is nie verdag’”. We invite the public to form their own views. 50/50 presented their view of events. The Rapport article paints a different picture as to the truth of events. We encourage the public to read the article attached. Fortunately, we recorded the entire interview, which is available for all to see on YouTube Rhino Force Full Interview Footage. We are not opposed to Relate selling bracelets. In fact we encourage it. Any company or NGO who wishes to put their efforts, time and passion into raising funds for rhinos will only benefit our beloved rhinos. However, an attempt to drive a company raising funds for rhinos out the market is disingenuous and to the disadvantage of our beloved rhinos. Relate claim that they would have made generated more funds than us, we accept your challenge! To all the members of the public who have come out in support for us, our fantastic retail partners, the beneficiaries doing amazing work, our various other partners, the hundreds of thousands of people who proudly wear our bracelets and the millions of people around the world who make donations towards rhino conservation, we thank you, sincerely. Kind regards, Chris & Joanne Thorpe

Rhino Force Documentation and Broadcasting Complaints Commision Document

STATEMENT IN RESPONSE TO 50/50 BROADCAST DATED 28 OCTOBER 2013

29 October 2013

Dear Valued Retailer, On 28 October 2013 50/50 aired a program featuring our bracelets. We have elected to respond to the allegations as contained in the article as 50/50 failed to take reasonable efforts to fairly present our opposing points of view. Attached hereto is our full statement. Rest assured that we are taking the issue up with the Broadcasting Complaints Commission of South Africa and have instructed our attorneys to handle the complaint. As you are aware we produce and distribute the RHINO FORCE beaded bracelets. In 2010 Chris Thorpe came up with the idea for the Rhino Force bracelet and conceptualized the design, layout and packaging in respect thereof. All intellectual rights in, and to, the Rhino Force bracelet now rest with The Bead Coalition (Pty) Ltd. Since the humble beginnings of Rhino Force, and thanks to your support, an amount of R4,832,997.59 has reached our beneficiaries. We have now launched beaded bracelets with distinctive colours and designs under the trademarks OCEAN FORCE, CYCLE FORCE, EARTH FORCE, HERITAGE SA, I AM LITERACY, JOOST VAN DER WESTHUIZEN, SPRINGBOK and BIG 5 FORCE COLLECTION. The purpose of this letter is to advise you that it has been brought to our attention that the entity “Relate” may have approached certain of our retail customers and attempted to sell a rhino type bracelet (that they have recently launched) by making disparaging remarks, and disseminating misinformation, about ourselves in an attempt to “sow the seeds of mistrust”. As a “Johnny come lately” in the market place, Relate’s conduct may be regarded a vain attempt to promote their beaded bracelet. However, to malign our products, trademarks, name and reputation as a selling point for their products is in bad faith and most certainly constitutes unfair competition. We are quite prepared to compete with Relate, and any other producer/distributor of beaded bracelets, on a level playing field. We are proud of our organization and of what we have achieved. We will, at all times, vigorously promote and defend our products, trademarks, name and reputation. Should you be approached by Relate (or any other entity) with allegations of any impropriety, we ask you to verify such information with us. We pride ourselves on our transparency and would welcome the opportunity to be heard and put the record straight. Once again we thank you for your support and we assure you of our prompt attention and service at all times. Kind regards, Chris & Joanne Thorpe