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Johannesburg - First National Bank has responded to claims that it manipulated affairs to get a property transaction at an auction cancelled.
In July 2008, Finweek journalist Vic de Klerk put in the highest bid (R710 000) for a property at a sheriff's auction in Wonderboom.
While a representative of FNB, which acted as plaintiff at the legal auction, accepted the offer at the auction, De Klerk claimed that the bank afterwards manipulated affairs in such a way that the sheriff's auction was cancelled. He said FNB indicated that they were not prepared to accept the sale of R710 000 for a property valued at R1.3m.
De Kerk was nevertheless stuck with carrying the cost of the sheriff's commission - R7 980 - despite losing out on the sale.
Recently he reported that the property was subsequently sold for R770 000.
On Friday Valerie Bosman, head of credit risk management at FNB Shared Services, responded to the claims.
She said in a statement that the property had not been sold to De Klerk, "as there is a 21-day period following the receipt of an offer during which an offer can be declined".
She added that acceptance of an offer to purchase a property from an insolvent estate is dependent on the trustees and master acting on behalf of the estate. They are mandated to act in the insolvent estate's best interests, and the decision is not made by First National Bank.
"The trustees acting for the estate declined your offer of R710 000 made on July 4 2008. They also declined an offer of R770 000 made in November 2008.
"Their position is that the property is valued at some R1.3m. These offers were deemed by the trustees as not being in the best interests of the insolvent estate."
The trustees will continue to market the property until they are satisfied that a market-related price has been achieved.
In response, De Klerk maintained his legal bid at the sheriff's auction was accepted by the attorney acting on behalf of FNB, but was later rejected by FNB before the owner was placed in provisional liquidation and before a trustee was appointed.
"FNB's response again underlines how futile it is to waste your time to attend an auction. A market-related bid can be rejected by the bank or the liquidator that has likely been appointed by the bank as the largest creditor."
- Fin24.com
