Auction Alliance to investigate claims of kickbacks and fake bidding

THE Auction Alliance board has broken its silence on the alleged business dealings of the auction house, saying it would now launch its own investigation.

Auction Alliance board chairman Sango Nstaluba said yesterday that the board had commissioned an investigation by an independent company to look into the allegations that have been levelled against the firm in recent weeks.

“The board considers the allegations against Auction Alliance and its CEO, Rael Levitt, to be of such a serious nature, that such a step is warranted,” Ntsaluba said.

Based on a paper trail dating back 13 years, insiders have lifted the lid on alleged kickbacks paid to senior bank staff, liquidators and attorneys to ensure more business was given to Auction Alliance.

Sources have also disclosed how Auction Alliance regularly paid for fake or vendor bidders to drive up prices at auctions.

Meanwhile, the SA Institute of Auctioneers (SIAIA) as also accepted Levitt’s offer to step down from its board.

The board also decided to retain Auction Alliance’s SAIA membership pending the outcome of the investigation. It has also decided to retain the directorship of Auction Alliance’s human resources director, David Bernstein.

Both the Estate Agencies Affairs Board and the National Consumer Commission are investigating allegations of misrepresentation. Levitt could also be charged with fraud by the National Prosecuting Authority.

The commission could also ask Auction Alliance to pay a fine of R1 million, or 10 percent of the company’s annual turn-over.

It is investigating a complaint lodged by businesswoman Wendy Applebaum, who has disputed an auction of the Quoin Rock Wine Estate in December where she claims she was the only genuine bidder.