Auction kickback scandal deepens

A GAUTENG attorney has admitted receiving a R500 000 cash kickback from Auction Alliance when involved in liquidating a company in 2003.

Cornelius Kirsten is one of a number of attorneys implicated in the auction kickback scandal exposed by Independent Newspapers a fortnight ago, leading to the company’s founder and CEO, Rael Levitt, stepping down.

In 2003 Levitt instructed his staff to pay a “referral” to “Kottie Kirstin” (misspelt), insisting it “will be in cash”, according to an internal paper trial.

At that time, Kirsten was a partner at Guys Louw attorneys in Alberton, specialising in insolvency cases, and was involved in winding down a company called Bosmond Konstruksie.

For appointing Levitt’s company as the mandated auctioneer, Kirsten appears to have been rewarded with R500 000 in return.

When he was approached last week about the matter, Kirsten’s first words were, “Oh, my God,” before then admitting, “Yes, I did receive it, from that Levitt fellow, but you know, I haven’t practised (as an attorney) for about six years now.”

Kirsten declined to say why he took the money or what he did with it, though when contacted this weekend, the former owner of Bosmond Konstruksie, Jan van Zyl, said he was never made aware of the R500 000, nor did he receive any portion of it.

“Kirsten never told me about this. This is the first I am hearing of it,” Van Zyl said.

Levitt declined to say why he paid the money to Kirsten.

Commission payment to attorneys is legal in some jurisdictions in SA, only if it is disclosed and under certain conditions.

The alleged kickback is one of several that have been brought to the attention of Independent Newspapers in recent weeks.

Bank staff have also been implicated in the scandal, forcing four of the country’s top banks to cease trading with Auction Alliance last week, a day after Levitt stepped down.

As evidence of alleged wrongdoing by staff at Investec, Absa and Nedbank came to light, the banks were quick to