Timeshare rocked by claims of deceit

Lies and misinformation are among the scandalous claims levelled against timeshare giants Flexi-Club and the Club Leisure Group, accused of swindling tens of millions of rands from clients.

The matter has been investigated by the Department of Trade and Industry, and CLG is currently the subject of a second investigation by the South African Revenue Service.

Unhappy clients from Flexi-Club and Club Resorts International (CRI), both of which are managed by a CLG subsidiary, have also amassed scores of written complaints and signed affidavits placing serious allegations at the feet of Flexi-Club managing director and CLG chairperson Stuart Lamont. Lamont has distanced himself and his companies from the allegations.

At the heart of the matter is the claim that Lamont helped to engineer a deal in 2000 whereby a management company, Club Leisure Management (CLM), was formed together with the Southern African arm of global timeshare leader RCI (Resorts Condominium International).

In the same year, RCI also purchased CRI Operations, the company with the management contract to administer CRI Club, a popular, points-based timeshare concept.

S'bu Mngadi, managing director of RCI's Global Vacation Network for Africa, told the Saturday Star this week that RCI soon afterwards sold CRI Operations to CLM. RCI and Flexi-Club continued to own CLM, with RCI as a minority shareholder, according to Mngadi. CLM then took over the management of the CRI club.

...timeshare fraud

IOL: Travel clubs rocked by claims of deceit

technorati tags:timeshare, fraud, timeshare, giants, Flexi-club, Club, Leisure, group