Independent Newspapers denies Auction Alliance kickbacks claim

According to Noseweek, Auction Alliance boss Rael Levitt had a 'trump card' - information that newspaper bosses had negotiated a kickback of more than R1m from him on the sale of two Cape Town buildings about a year ago. It also alleged that the editorial team and lawyers had 'evidence' of kickbacks paid to a prominent liquidator, and that Auction Alliance attorney Alan Smiedt was involved in laundering the money. Both Independent Newspapers and Smiedt have strongly denied the allegations. This is a grossly misleading depiction of events. No such deal was struck or even contemplated,' Independent Newspapers said. Earlier this year, Independent Newspapers exposed a money-making racket involving bank officials, liquidators and attorneys paid by the auction company to push business its way. Full report on the IoL site See also a report on the Fin24.com site

Jacques Louw, the attorney for Independent Newspapers, said the article 'twisted the facts', according to a report in Die Burger. He explained that there was a valid agreement between AA and the Independent group for the sale of buildings. In terms of the commission, 5% of the auction commission would go to the Independent Group and 5% to AA. 'To suggest that this money went into the pockets of newspaper bosses is absolutely untrue and irresponsible.' Noseweek has since started publishing court papers of the legal battle between AA and the Independent Group on which some of the reporting was based, writes Legalbrief. Full report in Die Burger Court papers on Noseweek site