Its spokesman, McIntosh Polela, said the raids began  yesterday. “We are (conducting) an investigation into allegations of kickbacks and corruption.

It stems from the much reported allegations that started with the auction in the Western Cape,” said Polela.

He was referring to the liquidated Quoin Rock Estate which led to Wendy Appelbaum’s complaint, filed with the National Consumer Commission (NCC), in which AA was accused of inflating the wine estate’s bid price through bid rigging.

AA’s attorneys, Smiedt and Associates, have suggested that on a “prima face basis the warrants have been issued unlawfully and unconstitutionally and in fragrant violation of our client’s rights.

“In the circumstances we are considering the various remedies available to our clients and will put the necessary action in place.”

Ian Small Smith, of BDK attorneys, who has been advising AA on the “criminal side of the investigation” since a criminal complaint was lodged with the police says that the “warrants appear to be very broad and that I would be surprised if they stand”.

Although the NCC seems to have foiled its own investigation by imposing “defective” compliance notices on the AA and the liquidators by failing to follow due process in its investigation of AA’s former CEO Rael Levitt, Levitt has subsequently admitted that AA has breached sections of the Consumer Protection Act (CPA) during its auctions.

Polela said the task team’s investigation is taking place independently of the NCC. “We took up the investigation ourselves,” he said.

The investigation is still in its “early stages” says Polela, and thus far has not included Levitt.  Smith said  a criminal complaint had been filed with SAPS but “they have not told us who filed it”. 

He confirmed that it was not the NCC.

– malcolm@moneyweb.co.za