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Jurie Senekal
File photo - Rael Levitt. Photo: Jurie Senekal
Auction Alliance boss Rael Levitt has resigned from the SA Institute of Auctioneers (SAIA), the body confirmed Wednesday morning.
This comes as the beleaguered businessman hit back at allegations about his business practices, saying he had nothing to hide, and offering to open his company’s books to investigators.
This would prove his company is clean, he says.
In an interview with the Cape Argus Tuesday night, Levitt said: “I would welcome any investigation – by the police, by the National Prosecuting Authority, anyone. Our books are absolutely open.
“Not only have I not broken any law, but we’ve been at the forefront of cleaning up the industry. I’m a huge supporter of the Consumer Protection Act. Prior, there was no protection for either buyers or sellers. I have worked with the Department of Trade and Industry to develop this, specifically to look after consumers’ rights.
“Instead, we’re being treated like a bunch of criminals, when we’ve actually been tried by the media. The media today thinks they are more powerful than a court of law.
“Considering our specific role in helping to regulate the industry, the allegations are bizarre.”
The rumblings began in December when mega-wealthy Wendy Appelbaum questioned whether the auction of a Cape Winelands estate, Quoin Rock, had been run ethically and legally. She specifically questioned whether she had bid against legitimate or fake bidders.
Since then more individuals have surfaced with allegations against Auction Alliance, including that illegal commissions were paid to liquidators, attorneys and bank staff, and that illegitimate bidders were used to drive up prices at auctions.
Auction Alliance has vociferously denied the allegations.
Today, SAIA said Levitt had resigned after this week saying he would “step back” from the body. John Cowing, vice-chairman of SAIA, said this morning: “Yes, we are accepting Mr Levitt’s resignation. He hasn’t been pushed, he offered it, and we’ve accepted the resignation. In terms of supporting auctionists, I think it (Levitt’s move) is a good move. He can put himself up for re-election if he is found not guilty, once the investigation has taken place.”
The Cape Argus asked Levitt directly whether his company had ever paid illegal “kickbacks”, to which he replied: “Absolutely not.”
Asked whether it was possible that any of Auction Alliance’s employees had broken any laws, he said: “I believe our systems are good. But we do employ around 300 people.
“To ensure that there has been no impropriety, we have appointed a private, independent forensic investigations company to investigate our internal systems.”
Asked which firm had been appointed, Levitt said this was a “reputable South African auditing firm”.
He said it was also possible laws governing legal auctions were not properly understood. “So, since the (Quoin Rock) auction, we have also looked at reviewing our systems to ensure that we have no practices which may be entirely legal, but may be considered unethical by the public.”
Insofar as this might refer to “vendor bidders”, Levitt said of the controversial Quoin Rock auction: “From day one I have said that Mrs Appelbaum has been confused by the difference between a proxy bidder and a vendor bidder.
“We hold 3 000 to 5000 auctions a year, and there are often bidders who do not want to be in the glare of public cameras. Proxy bidders simply bid on their behalf.
“At the Quoin Rock auction there was a genuine bidder bidding with Mrs Appelbaum. She saw a proxy bidder, and saw someone who she thought did not have the means to buy the farms. But the proxy bidder was indeed bidding on behalf of a bidder who has huge and significant means... ”
In an earlier response to the allegation of vendor bidding, Levitt said such bidding was internationally and nationally regarded as acceptable practice. It was also regulated, transparent and advertised.
Levitt said on Wednesday: “... We have not had one negative article in any of the Independent Newspapers in 20 years, and now suddenly there’s a slew. Do you seriously believe that if we were not a highly ethical business that there would not have been articles in the past?” – Additional reporting by Sibongakonke Mama - Cape Argus
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Wayne, wrote
It's hilarious how friends and colleagues try to defend his honour, they guy is a crook and should be dealt with accordingly...believe a lengthy jail term should be in order?
matt, wrote
As a betting man I will not place much money on Mr Levitt escaping this one. Cash or no cash there always exists a paper trail. Mechanick, Levitt, others.....
Anonymous, wrote
Where there is smoke there is ALWAYS fire!!!!
AntiAuctions, wrote
Anyone who has attended an AA auction will know the intimidating tactics that are employed by their staff in "bullying" bidders into upping their bids, instead of leaving them to their own vices and stopping where they feel safe to stop. Words like "c'mon Sir, don't lose this property for the sake of R100,000". It's all about maximizing their 10% buyers commission, that's all.
Anonymous, wrote
Something is not right, there has been a 'slew' of information against Rael, let me guess mmmmmm.......... some disgruntled former employees????????
Anonymous, wrote
Don't let this get you down Rael. I know you as a friend and as a businessman. You know who and what you are - forget about the rest of the world - let them think what they want to. They first have to prove you've done wrong. And that they cannot do!!!!
Elise, wrote
I think it stinks that the media can bring a man of Rael Levitt's stature to a fall by throwing rocks at him picked by a member of the public (Mrs Appelbaum) and believe her rather than a man who has built up a business from a one man concern to where it employs over 300 people today. He's a wonderful friend and the best businessman one can think of being fair to all and sundry. Give the man the benefit of the doubt as the bidder had the choice of withdrawing, didn't she????
Peter, wrote
They get the best price a the auction then try and negotiate a better price in private ?
bid, wrote
Bidding off the wall is another one of there tatics... This where they pretend that another bidder is behind you. "The Wall"... common practice..apparently legal..but I doubt ethical..
Anonymous, wrote
And Mr Levitt, what about the hotel saga on the Vaal a few years back?
Anonymous, wrote
What about the firms of attorneys who were allegedly in cahoots with Mr Levitt. Are the regional law societies having jurisdiction likely to investigate the member firms in question?
נוכל, wrote
What else is new...
Phillip, wrote
I believe Rael has the right to defend himself, so give him that opportunity and lay off the slaunder.
Anonymous, wrote
Has any actual evidence been presented that corroborates the accusations?
Anonymous, wrote
I think Rael is very confused as to the difference between a Vendor and a Proxy bidder (and indeed a ghost bidder) not Mrs Appelbaum. Mrs Appelbaum contends that the under bidder was neither a vendor bidder nor a proxy bidder but a ghost bidder (i.e. does not exist!). Deon Leygonie has admitted he was paid to attend the Auction and mandated to bid to R45MM which he says he never exceeded (so he cant have been the bidder at R50MM or R60MM) and he wasn't registered to bid and had none of the paperwork required to be a proxy bidder so he can't have been a proxy bidder, he was also identified by Auction Alliance staff (who know him very well as he attends almost all their auctions) as a 'second hand furniture dealer'. Ariel Gerbi was not registered to bid and was not in attendance at the Auction so he can't have been the bidder at R50MM or R60MM. None of the other parties registered to bid entered bids at R50MM or R60MM. Perhaps Rael can clear up the confusion once and for all and admit that the bidder at R50MM and R60MM was a ghost bidder and that he broke the law (committed fraud) - if he released all the video footage taken at the auction then this would be proven...
sipho syphfliss, wrote
sour grapes me thinks
Going, going, gone..., wrote
Tut-tut. There's always somebody behind the scenes at auctions to artificially push up the prices.
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