Auction Alliance CEO and founder Rael Levitt will step down from his post pending an independent investigation into allegations of a money-making racket, the company's board said on Monday.
Current chief financial officer Bruce Sneddon would take over as acting chief executive, it said in a statement.
According to the Cape Times, the move is subject to the findings of an independent investigation launched by Auction Alliance in the wake of a complaint raised by businesswoman Wendy Appelbaum to the Consumer Protection Commission regarding a botched auction last December.
“In the last week Levitt and the auction house have been the focus of investigations by the commission, the Estate Agencies Affairs Board and the South African Institute of Auctioneers, each of which are to probe allegations of hefty financial kickbacks to liquidators, attorneys and bank staff as well as bogus bidding on the auction floor on the instructions of Levitt himself,” the newspaper said on Tuesday.
Levitt is due to appear before a panel next Monday, assembled by the commission, which will include a representative of the National Prosecuting Authority, the report said.
On Monday, the Cape Times reported that three banks would also investigate claims some of their staff colluded with Auction Alliance, liquidators and attorneys to push business their way.
Levitt allegedly wrote in e-mails that the kickbacks would be paid in cash.
Staff at various banks were allegedly paid large sums of money to ensure the company received preferential treatment. Kickbacks typically comprised half the company's earned commission.
Levitt has denied all allegations, calling them defamatory. - Sapa