INLSA

Rael Levitt

Zara Nicholson

EMBATTLED Auction Alliance boss Rael Levitt has offered to step down as a board member of the SA Institute of Auctioneers (SAIA) pending an investigation into his business dealings.

In an e-mail yesterday to the chairman of SAIA, Tirhani Mabunda, Levitt offered to “step back” while allegations relating to payouts and kickbacks to liquidators, bank staff and attorneys were investigated by the Consumer Protection Commission and the Estate Agencies Affairs Board.

Levitt and his company are alleged to have paid parties to swing business its way.

According to signed affidavits, Auction Alliance had regularly used bogus bidders to drive up bids at auctions.

SAIA’s board members planned to convene an urgent meeting today followed by a press conference to respond to the issue.

However, Mabunda said yesterday they would no longer be holding the press conference due to Levitt’s e-mail.

“I received an e-mail from Rael and he offered to step back while the allegations are being investigated. Unfortunately our code of conduct is silent on how we deal with it when one of our members is being investigated. We can’t take a view on claims and counter-claims. I will be circulating his e-mail to all the board members to get their view before we decide on his offer,” Mabunda told the Cape Times.

He said Levitt in the meantime had been asked to excuse himself from any board meetings where the allegations would be discussed.

Mabunda said Levitt also denied any of the claims reported in weekend newspapers, calling the allegations “sensationalist rumours” made up by people who wanted to

bring him down.

“There is nothing for SAIA to decide at this stage and we will wait for the relevant bodies to investigate. The allegations of kickbacks have always been made over the years but no auctioneer has ever been mentioned by name,” Mabunda said.

“The allegations that have been levelled are very serious and we hope there is a conclusion to the investigation. If the allegations are found to be true and prosecution is pursued, then it will be a clean-up of the industry.”

The saga started unravelling after businesswoman and philanthropist Wendy Appelbaum disputed the procedure followed at the auction of Quoin Rock Estate where she was the winning bidder.

Appelbaum said she was the only bidder and had bid against herself, which had raised serious concerns.

Last month she lodged a complaint with the Consumer Protection Commission and Levitt responded by suing her for defamation.

Appelbaum told the Cape Times that Levitt had offered her a settlement but wanted her to drop her case. She refused.

Levitt was meant to respond to the Consumer Protection Commission by last Friday.

He did not respond and has been granted an extension until today.

zara.nicholson@inl.co.za