‘Vendor bidding, referral commissions are legal practices’
disgruntled ex-alliance employees who left the company and are now working for competitor companies in Johannesburg and Cape Town.
Over two decades we have grown into South Africa’s leading auction house because of our enduring reputation, founded on honesty, integrity, credibility and sound business management.
Our company has always enjoyed an impeccable reputation as a business leader and an innovator with a reputable brand.
We have over the past few years seen sales staff move- ment, but it is simply untrue and unfair that there has been a massive staff turnover due to an intimidating, bullying culture.
Many of our team members have been with the group since inception and are extremely proud of the company’s pioneering history.
We do not resort to unethical, fraudulent or corrupt business practices in order to generate business. We count blue-chip companies, all the country’s major banks, listed property companies, government departments, parastatals, international firms and media houses among our clients, and this testifies to the standing that we enjoy in the marketplace.
We continually conduct the country’s highest value sales because we deliver results for both our buyers and sellers. We are a good company, managed by good people, despite what our detractors may say.
Our company has a strong culture of good corporate governance and our board of directors consists of individuals of the highest integrity, ability and track records.
Insofar as Auction Alliance has been accused of making unlawful payments to attorneys, referral commissions paid to attorneys have historically been recognised as lawful and approved by the various law societies. It is not uncommon for law firms to refer auctions to auctioneers and when they do, we may agree to give the attorney concerned a referral commission and we leave it to the attorney to make the necessary disclosure to their clients.
This is a long-standing and accepted practice in the auction industry. Should the law societies change their policies in this regard, we will natu- rally comply.
It is alleged that Auction Alliance has been involved in a “kickback” payment scheme with some of the country’s largest banks as well as liquidators. This implies corrupt and unethical business practices on the part of Auction Alliance, which is denied, as are all other allegations against Auction Alliance or Rael Levitt suggesting impropriety of any sort.
In October last year we were alerted to the fact that Investec Bank officials were accused of receiving commissions from one of our former employees. Both the bank and ourselves in- vestigated these allegations, which emanated from sequestrated former directors of a company involved in a hostile three-year legal battle with the bank. These allegations were found to be without substance.
The allegation about an Absa official having being ousted some years back because of Auction Alliance, is a disingenuous rumour devoid of any truth.
With regard to the allegation concerning vendor bidding (the practice of accepting bids from the seller or someone appointed on his behalf to raise the price of a particular lot to the reserve price), such bidding is both inter nationally and nationally regarded as an acceptable and lawful auction industry practice.
Vendor bidding has now been formalised by statute with the introduction in April 2011 of the Consumer Protection Act. We advise all our bidders whether an asset is to be sold with or without reserve and if it is the latter we advise all bidders that vendor bidding may take place on behalf of the seller.
Our role is to protect the seller’s reserve price while ensuring that the purchaser purchases the property or asset at a fair value. Vendor bidding is not only lawful but it is now regulated, transparent and advertised.