11 May 2011 Estate Agency Affairs Board (EAAB) places hold on First National Bank accounts opened by Constantia Sectional Title Management (PTY) Limited

IMMEDIATE RELEASE
11 MAY 2011

The Estate Agency Affairs Board (“The EAAB”), after receipt of an anonymous disclosure regarding the affairs of Constantia Sectional Title Management (Pty) Limited (“CSTM”), duly commenced an inspection of CSTM on 17 March 2011.
 
The EAAB thereafter applied to the High Court of South Africa on 14 April 2011 to both interdict CSTM from continuing to operate as an estate agent and to appoint a curator to control and administer the trust accounts of CSTM. This application was opposed by CSTM. 
 
A settlement was concluded between the parties on 19 April 2011 in terms of which it was agreed that an independent Chartered Accountant be appointed to monitor all the transactions on the trust accounts of CSTM and that the inspection process initiated in respect of CSTM continue.
 
On 10 May 2011 the inspectors became aware that approximately eighty bank accounts in the name of both CSTM and Strata Property Consultants had been opened with First National Bank of South Africa Limited, 5th Avenue Branch Springs (FNB). The inspectors, furthermore, ascertained that a significant amount of money previously held in CSTM's trust account on behalf of various bodies corporate, to which CSTM provided services, had been transferred into these FNB accounts, which accounts were controlled by an employee of CSTM.
 
The inspectors determined that these specific FNB accounts had not been opened in accordance with the peremptory provisions of the Estate Agency Affairs Act.

The EAAB has, with the full cooperation of FNB, placed a hold on these identified bank accounts in the interests of protecting trust depositors until such time as the inspectors have been able to determine that these bank accounts comply with the provisions of the Estate Agency Affairs Act.
 
Any enquiries may be referred to the inspectors at fax 011 510 1805 and info@pascorisk.com or to Ms. Portia Mofikoe of the EAAB at portia.mofikoe@eaab.org.za .
 
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For all media enquiries:
 
Marketing and Communications                                   
Estate Agency Affairs Board                                                   
Tel: 011 731 5600 or margie@eaab.org.za



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