PRESS RELEASE for the SOUTH AFRICAN INSTITUTE of AUCTIONEERS 28Th ANNUAL CONFERENCE AND

PRESS RELEASE FOR THE SOUTH AFRICAN INSTITUTE OF AUCTIONEERS’ 28th ANNUAL CONFERENCE AND AGM HELD AT THE RIVERSIDE LIFESTYLE RESORT IN VANDERBIJLPARK ON 24 MARCH 2012

The South African Institute of Auctioneers’ (SAIA’s) held its 28th Annual Conference and AGM during the weekend of the 23rd to the 25th of March 2012 at the Riverside Lifestyle Resort in Vanderbijlpark. The event was epoch making, happening in the middle of an investigation into allegations of bid rigging and impropriety against industry leader Auction Alliance. Because of heightened interest in recent developments, the conference attracted a record breaking number of delegates and guest, including high quality speakers and panelists. The event was both educational and entertaining, boasting insightful topics, exhibitions, bid calling championship and networking events such golf and boat cruise.

TirhaniMabunda, SAIA’s Chairperson set the tone in his opening and welcome speech declaring that South Africa’s auction industry was at the crossroads, adding that the decisions and resolutions take at the conference would shape the form and character of the auction industry for decades to come. Mabunda went on to fire a broadside at corrupt insolvency practitioners, saying that “the real axis of evil within the auction industry lies with insolvency practitioners who are at the centre of the corruption bedeviling the auction industry”. Among other ills, Mabunda accused liquidators for manipulating the requisition system, enjoying too much unfettered power including the unilateral appointment of auctioneers, blurring lines by marketing assets themselves, double-dipping by demanding kickbacks from auctioneers. According to Mabunda, the insolvency industry is the only profession where conflict of interest is a prerequisite for survival, with husband and wife teams prevalent where the one is strategically positioned as a liquidator and the other as an attorney or disposal agent (auctioneer). Mabunda also took pot shots at Sheriffs with regard to the role they play on sale in execution auctions. Mabunda said that, by and large, the sale in execution process fails both judgement creditors and judgement debtors. Judgment creditors usually safeguard their interests by buying the assets back in instances where reserve is not met, but the same cannot be said for judgement debtors who often do not have knowledge about the process, let alone their rights. Mabunda announced that SAIA and the Sheriffs Board had agreed to form a joint committee consisting of three members each to deal with matters of common interest relating to the conduct of auctions and the regulation of the auction industry.

MsMamodupiMohlala, National Consumer Commissionerwas the keynote speaker at the conference and her speech addressed the conference theme of‘The effects of the Consumer Protection Act on the auction industry; enforcement and compliance imperatives’. TheCommissioner said that the Auction Alliance/Applebaumcase had alerted the public to their rights and a myriad of complaints were flooding in. The Commissioner mentioned that the outcome of the Auction Alliance investigation would usher in important and dramatic changes, including theaccreditation of a code to regulate the auction industry, which will prescribe minimum standards of qualification, licensing, ethics and professionalism for auctioneers. MrThakaSeboka, a member of the Sheriffs Board defended the role played by Sheriffs, saying that unlike commercial auctioneers who are mainly profit driven, Sheriffs are impartial agents of the state whose role is to protect the interests of judgement creators and judgement debtors. MrLulamaPotwana, the Director for Consumer and Competition, Law and Policy: Consumer and Corporate Regulation Division at the Department: Trade and Industryaddressed the pros and cons of self regulation and statutory regulation in a presentation entitled ‘Parliamentary Act or Industry Code: Alternative legislative or policy considerations for the full regulation and statutory recognition of the auction industry’. Miss NontokozoZondi, the Chamber Manager for Real Estate, Property Management and Auctioneering at the Services SETA deliver aninsightful presentation on ‘Education, Licensing and Continuous Professional Development (CDP)’. MrTienie Cronje of the South African Law Reform Commissionrepresented the Chief Master of the High Courtat the conference and delivered a paper on ‘The Policy for the Appointment of Liquidators’. Mr Cronje conceded there are indeed problems with the current method of appointing liquidators and the effectiveness of the Master’s offices.

The conference culminated in a glittering gala dinner where a highly competitive bid calling championship was heldfeaturing five contestants. Stef Olivier from West Cape Auctioneers became the South African 2012 Bid Calling Champion and won an all expenses trip to the National Auctioneers Association (NAA) conference in Spoken, Washington State, USA in July 2012 where he will represent South Africa in the International Auctioneers Championship. The NAA is the world’s biggest association of professional auctioneers with over 5000 active members across the world. David Lichtenstein from High Street Auctions was the runner-up for the bid calling championship. The other entrants were TsitsoSentai of Tirhani Auctioneers, Charl Thompson of C and D Thompson Auctioneers and Ronnie Botes of Dynamic Auctioneers.

The SAIA Board held a board meeting the day after the conference and ratified the conference’s resolutions, including the following among others:

• The accreditation of a code to regulate the auction industry, which will prescribe minimum standards of qualification, licensing, ethics and professionalism for auctioneers.
• The professionalization of the auction industry by December 2014 such that only members with a minimum NQF Level 4 SAQA qualification and a license/practice number renewable annually based on conduct and continuous professional development (CPA).
• The enforcement of compliance to the Consumer Protection Act by auctioneers in collaboration with the National Consumer Commission.
• The education of all its stakeholders, particularly sellers and members of the public about the importance of using professional auctioneers who are members of SAIA.

TirhaniMabunda

SAIA Chairperson