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Johannesburg - The Estate Agency Affairs Board (EAAB) will seek an interdict against Constantia Sectional Title Management (CSTM) in the high court in Johannesburg on Tuesday.
"We confirm that the hearing of the application brought by the EAAB in the South Gauteng High Court for interdictory and other relief against CSTM has been enrolled for hearing (on Tuesday)," the EAAB said on Monday.
This followed the court's granting of a settlement order to the two parties on April 20 following an investigation into "alleged improprieties" at CSTM.
The parties had agreed to resolve the "issues raised in the application, for the time being", the settlement order read.
In terms of the agreement, an independent third party, Lawrence Moepi, a chartered accountant with PricewaterhouseCoopers, would monitor all CSTM's trust account transactions for the next six months.
However, on Friday the EAAB said it was "presently not satisfied with the results of these investigations or, indeed, that the affairs of CSTM are in order and compliant with relevant legislative requirements".
Under the circumstances, the EAAB had been obliged to report "the strong suspicion of criminal wrongdoing" to the SA Police Service.
It believed that, as a result of this, a search and seizure warrant was executed on Friday.
It said it had launched further urgent proceedings in the high court in Johannesburg seeking interdictory relief against CSTM.
In terms of April's settlement order, Pasco Risk Management, appointed by the board, would be given access to all CSTM's books and documents to continue its investigation.
CSTM had agreed to cooperate with the investigation into the alleged misuse of its trust funds.
The urgent application followed an anonymous complaint about CSTM's affairs.
The EAAB appointed Pasco to investigate starting March 17.
"CSTM is in possession of Fidelity Fund certificates for the 2011 year," read a draft latter from the EAAB forming part of the court documents.
In terms of the Estate Agency Affairs Act, a valid Fidelity Fund certificate is required by estate agents and their directors before they can operate.
In December, the board successfully applied to the same court to place Wendy Machanik Property Holdings' trust accounts under curatorship, following alleged financial irregularities in the management of the accounts.
CSTM, with headquarters in Roodepoort, administers 450 body corporates and receives close to 20 000 monthly payments, said CSTM council Dirk Vetten following the initial court proceedings.
"We confirm that the hearing of the application brought by the EAAB in the South Gauteng High Court for interdictory and other relief against CSTM has been enrolled for hearing (on Tuesday)," the EAAB said on Monday.
This followed the court's granting of a settlement order to the two parties on April 20 following an investigation into "alleged improprieties" at CSTM.
The parties had agreed to resolve the "issues raised in the application, for the time being", the settlement order read.
In terms of the agreement, an independent third party, Lawrence Moepi, a chartered accountant with PricewaterhouseCoopers, would monitor all CSTM's trust account transactions for the next six months.
However, on Friday the EAAB said it was "presently not satisfied with the results of these investigations or, indeed, that the affairs of CSTM are in order and compliant with relevant legislative requirements".
Under the circumstances, the EAAB had been obliged to report "the strong suspicion of criminal wrongdoing" to the SA Police Service.
It believed that, as a result of this, a search and seizure warrant was executed on Friday.
It said it had launched further urgent proceedings in the high court in Johannesburg seeking interdictory relief against CSTM.
In terms of April's settlement order, Pasco Risk Management, appointed by the board, would be given access to all CSTM's books and documents to continue its investigation.
CSTM had agreed to cooperate with the investigation into the alleged misuse of its trust funds.
The urgent application followed an anonymous complaint about CSTM's affairs.
The EAAB appointed Pasco to investigate starting March 17.
"CSTM is in possession of Fidelity Fund certificates for the 2011 year," read a draft latter from the EAAB forming part of the court documents.
In terms of the Estate Agency Affairs Act, a valid Fidelity Fund certificate is required by estate agents and their directors before they can operate.
In December, the board successfully applied to the same court to place Wendy Machanik Property Holdings' trust accounts under curatorship, following alleged financial irregularities in the management of the accounts.
CSTM, with headquarters in Roodepoort, administers 450 body corporates and receives close to 20 000 monthly payments, said CSTM council Dirk Vetten following the initial court proceedings.
