Loading...
See More

Agency board rejects Machanik's claims

May 31 2011 13:18 I-Net Bridge

Related Articles

Another estate agent probed

Property sector unsure of new act

Interdict sought against estate agent

Estate agent turmoil: govt steps in

Rosier outlook for SA property

Property sector unsure of new act

 
Johannesburg - The Estate Agency Affairs Board (EAAB) has rejected "unfounded and unsubstantiated allegations" raised by former estate agent Wendy Machanik at a commercial crimes court hearing on Monday.  

Machanik's criminal case was postponed to July 21 to allow the director of public prosecutions to consider representations made by herself and her two co-accused.

Among these submissions was that the EAAB had used monies from its fidelity fund to pay staff salaries and other expenses.

"The facts, and the EAAB's audited financial statements in respect of both itself and the Estate Agents Fidelity Fund (EAFF) for the periods from 2005 to 2010, unambiguously show that any allegations suggesting the unauthorised use by the EAAB of EAFF monies are not only completely devoid of substance but also baseless," the EAAB said.

"There is neither merit nor truth to the averments attributed to the former CEO of the EAAB that the EAAB was either 'bankrupt' or using monies from the EAFF without authorisation."

The EAAB added that any such activity would have raised an exception in the audit of both the EAAB and the EAFF.

"The audited financial statements contain no such qualification and, indeed, show that the EAAB had surplus cash over all the financial years concerned after paying its own expenses."

The EAAB said that at no time had the funds of the EAFF been used for purposes other than those prescribed by the Estate Agency Affairs Act, or to fund the expenses of the board.

"Had the averments contained even an iota of substance neither the EAAB nor the EAFF would have received unqualified audit reports."

The EAAB said it was mandated by the act to control and manage the EAFF.

"The act, furthermore, permits the EAAB to pay from the EAFF, whenever it is required, the expense involved in the control of the fund, including remuneration and allowances to members of the board in connection with the management of the fund.

"The board, in giving effect to the provisions of the act, has authorised, as the act permits, the payment of an administration fee, which changes from time to time as circumstances warrant, from the EAFF to the EAAB. The administration fee is, furthermore, fully dealt with and properly accounted for in the audited financial statements of both the EAAB and the EAFF."

The EAAB emphasised that the act gave it full discretion on whether or not to pay, out of the EAFF, interest on any claim that had been admitted against the EAFF.

"Claims committees of the EAAB consider such claims and make suitable recommendations on their payment or otherwise to the board. Such recommendations include the question of whether or not the board should, in the exercise of its statutory discretion, pay interest to claimants."

Machanik, as well as Wendy Machanik Property and its chief financial officer, Bruce Bernstein, have been charged with counts relating to allegedly making irregular transfers totalling R28m from Wendy Machanik Property's trust fund to a fictitious account and misusing trust monies.

eaab  |  wendy machanik  |  estate agents
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...