New industry group pushes for change
A GROUP of black auctioneers has come together to form the South African Professional Auctioneers Association (SAPAA) to advance transformation in the industry.
They also want to have the industry regulated to improve standards and eliminate harmful practices. The association is open to all companies in the industry willing to subscribe to its constitution and code of ethics and conduct.
The initiative is spearheaded by Tirhani Mabunda, owner of Tirhani Auctioneers, the largest black-owned auction company in South Africa, which was established in 2001. SAPAA’s main aim is to “establish a professional, ethical, equitable, accountable, credible and respectable auction industry”, says Mabunda.
They realised that the industry had huge potential for growth and to create more opportunities for black auctioneers and black-owned companies. Mabunda has been chairman of the South African Institute of Auctioneers.
SAPAA aims to professionalise the industry by developing minimum qualification criteria to practise while influencing the legislative and regulatory environment to facilitate the entry of small, blackand women-owned auctioneers. SAPAA also aims to encourage both the government and the private sector, especially banks, to spread auction work more equitably among auctioneers so as to promote small players.
It has been estimated that black-owned auction companies receive less than 2% of the industry’s annual fees that substantially exceed R2-billion. The association also aims to communicate the benefits of using auctions to buy and sell goods.
Mabunda, who is chairman of the board, is joined by Lot Mahlangu as his deputy. The two have worked together at the South African Institute of Auctioneers.
Teleni Shabangu, a black woman auctioneer and owner of Rihalazana Auctions, is the general secretary while Jeff Maaga is her deputy. The treasurer is Tumi Ngwato, owner of Tumai Auctions and Valuers, leading handlers of municipal auctions.
The association has stringent criteria for assessing an auction company’s empowerment credentials. Using government guidelines that black ownership is 51% or more while empowered status is 26% to 51%, SAPAA further requires that black shareholders have paid for their shares.
Shabangu, who qualified as a teacher and joined the industry as a receptionist working her way up to running her own company, says the industry would look to develop a post-matric qualification that leads to being a professional auctioneer. The industry should be regulated to root out malpractices such as bribery and other forms of corruption.
The association offers six categories of membership. Corporate membership is open to auctioning companies, whether live or online. Professional membership is open to qualified practising auctioneers. People who have obtained the necessary qualification and are doing their practical training can join as apprentice members and those who work at auctioneering companies and are auctioneers can become affiliate members.
Associate membership is reserved for people and companies who are clients or suppliers to the auction industry. These include insurance companies, financial institutions, legal practitioners, training providers and government institutions.
Finally, the association offers honorary membership to people in and outside auctioneering who are considered to have contributed to its growth and transformation.