Fin24

Auction alliance CEO steps down

2012-02-28 11:57

Johannesburg - 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 will take over as acting CEO, it said in a statement.

Sneddon will work with Peter Moyo, CEO of Amabubesi Group. Earlier on Monday, the Cape Times reported that three banks will investigate claims that some of their staff colluded with Auction Alliance, liquidators and attorneys to push business their way.

Levitt allegedly wrote in emails 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.