Auctioneer under fire over alleged kickback scandal

Auctioneer Rael Levitt is under investigation and faces a bruising assault in the courts - which have already ruled that his firm 'deliberately misled' the buyer of a R50m security estate, notes a Sunday Times report. The tycoon behind the R6bn-a-year Auction Alliance empire rubbished media reports that he had paid kickbacks and rigged auctions. However, he now faces a probe by both the Estate Agency Affairs Board and the National Consumer Commission after allegations of auction irregularities. The report notes Auction Alliance last year received a damning judgment for 'deliberately misleading' buyers into bidding for 'one of the largest security resorts on the Garden Route'. Since then several other allegations involving high-profile personalities have surfaced. Auction Alliance's board of directors yesterday announced that it has commissioned an investigation by an independent company into allegations that have been levelled against the firm in recent weeks, according to a report in Business Report. Full Sunday Times report Full report in Business Report

The scandal deepened over the weekend, according to a Weekend Argus report, which notes the under-bidder in the controversial Quoin Rock wine estate auction revealed Levitt paid him to bid, effectively driving up the price. The revelation by Deon Leygonie is the latest in a list of allegations that include AA paying kickbacks to liquidators, attorneys and bank staff to pull business their way. The company is also alleged to have trained its auctioneers to rig auctions, and to use bogus buyers paid by AA to attend auctions to drive up bids, notes the report. Full Weekend Argus report (subscription needed) See: Auction house implicated in kick backs scandal (Weekend Argus)

Levitt has resigned from the SA Institute of Auctioneers, the body confirmed yesterday, according to a Cape Argus report. It notes that 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. Levitt is quoted in the report as saying: '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.' A report in Die Burger notes Consumer Commissioner Mamodupi Mohlala warned that Auction Alliance faces steep fines and even imprisonment for its bosses if the complaints she had received are proved. AA is accused of paying lawyers, liquidators and banks to obtain auctioneering business. Billionaire Wendy Appelbaum submitted a complaint in connection with alleged irregularities with the auctioning of the Quoin Rock wine estate outside Stellenbosch. According to the report, Investec spokesperson Cecilia de Almeida said the bank was aware of allegations that employees had received kickbacks from Auction Alliance, but had not received any proof of the allegations. Full Cape Argus report Full report in Die Burger See also a Cape Times report