Auction Alliance staff are leaving the company in droves and others who are still there have been given a month’s notice and been informed that the company is winding up its affairs.
This follows hot on the heels of the National Consumer Commission’s ruling last week which found company founder Rael Levitt had used “ghost bidder” Gideon Leygonie to bid against Wendy Appelbaum, contravening Section 45 of the Consumer Protection Act.
Levitt is in Israel but is expected to return to SA this month.
The Cape Argus has reliably learnt that some Auction Alliance staff were retrenched on Friday, that others were given a month’s notice and that the company was winding up its affairs and will be closing down.
Staff members were extremely reluctant to answer questions posed by the Cape Argus on Monday morning .
Employees arriving at Auction Alliance in CBD drove directly into underground parking area.
Advertising staff at Independent Newspapers, the holding company of the Cape Argus, said AA staff had called on Friday saying they had all been retrenched and only a few accounting staff were left.
They were placing ads for the last time, they said.
Advertising consultant Shireen de Villiers said three people she dealt with regularly had been retrenched.
The company confirmed on Monday morning that it was “cutting certain costs and there was no definitive plan” for their future.
It would not confirm that staff had been given notice.
An industry insider said many of the company’s staff were leaving the embattled organisation and seeking new job opportunities with other auction houses.
A broker with Auction Alliance who did not wish to be named said “you are stating the obvious” when asked if people were leaving.
“There are problems,” he said.
On Friday the National Consumer Commission laid bare its findings on allegations of bid rigging and fraud against Levitt and his company.
Levitt could face a year in prison or a R1 million fine. If the company is found guilty of transgressing the Consumer Protection Act, it can expect to receive a hefty fine equivalent to 10 percent of its annual turnover.
Last year, AA recorded turnover of R300m, based on asset sales to the tune of R6 billion, according to an affidavit signed in February by Levitt, founder and former CEO of the company.
A respected source within auctioneering circles said this morning there were many rumours doing the rounds but he knew that staff were leaving and looking for work opportunities elsewhere.
Cape Argus