Jurie Senekal

Rael Levitt

Zara Nicholson

AUCTION Alliance boss Rael Levitt has responded to the National Consumer Commission (NCC) following a complaint lodged by billionaire businesswoman Wendy Appelbaum who is embroiled in a dispute over the Quoin Rock Wine Estate auction.

Appelbaum lodged her complaint with the NCC last month, disputing the legality of the auction process. She bought the Stellenbosch farm for R55 million in December but said she discovered later she was the only genuine bidder.

Should the commission find Appelbaum’s allegations to be true, Levitt could be fined 10 percent of his company’s annual turnover, or R1m, whichever is greater.

He could also be charged with fraud by the National Prosecuting Authority (NPA) in terms of the Consumer Protection Act, implemented last March.

Appelbaum’s dispute is at the centre of a bigger controversy about Auction Alliance’s business operations that exploded at the weekend, with allegations that Auction Alliance regularly used bogus or vendor bidders to drive up prices at auctions, and also paid kickbacks to attorneys, senior bank staff and liquidators to ensure they got more business.

Levitt, who has come under attack after the revelations surfaced, was given until yesterday to respond to Appelbaum’s complaint after missing a deadline last week.

He told the Cape Times yesterday: “My response has been submitted.”

Explaining the procedure, Commissioner Mamodupi Mohlala said the commission would call in both parties to try to find a solution.

“If we find there are two completely different stories and there is no agreement, we will issue a compliance notice to compel the respondent to make sure that the property is sold to Mrs Appelbaum at the correct price without any ghost bidders.

“So they will need to go back to the auction process with ordinary and correct bidders being part of the process.”

The NCC would then ask for an administrative penalty to be imposed by the National Consumer Tribunal.

If Auction Alliance was guilty of improper conduct, the results of the investigation would be referred to the NPA, who could then bring a charge of fraud against the directors of Auction Alliance.

The NCC investigation could take anywhere between a week and six months.

zara.nicholson@inl.co.za