“As the representative body of commercial auctioneers, SAIA has taken the bull by the horns and is working constructively to restore the image of the auction industry.

The first phase of this process is our national stakeholder roadshow,” says Tirhani Mabunda, chairman of SAIA.

Mabunda explains that SAIA representatives met with both the Financial Services Board (FSB) and the Banking Ombudsman last week, and that they will be meeting with the Banking Association and the Association of Insolvency Practitioners of Southern Africa (AIPSA) this week as part of this process.

Other stakeholders who will be consulted during SAIA’s roadshow are the National Consumer Tribunal (NCT), the National Credit Commission (NCC), the Estate Agency Affairs Board (EAAB), the Agricultural Produce Agents Council (APAC), the Sheriffs Board, the Chief Master of the High Court, the South African Federation of Livestock Agents (SAFLA), the South African Insolvency Practitioners Society (SAIPS), the Association of Black Insolvency Practitioners (ABIP), the South African Banking Risk Information Centre (SABRIC), the Law Society, the Services SETA and the Department of Trade and Industry (DTI).

“The key initiatives that form part of this roadshow, in which we are fully supported by our stakeholders, include the accreditation of an industry code – the first draft of which is due for circulation by August 2012; the genuine transformation of the industry, and the importance for sellers and consumers to only work with qualified professional auctioneers accredited by a recognised body,” he adds.

The overall objective of SAIA’s initiative is to create a credible auction industry that will increase consumer confidence in the auction industry and protect consumers, both sellers and buyers, against unfair and anti-competitive conduct at auctions.

The proposed industry code is sponsored by the National Consumer Commission (NCC) and will prescribe minimum standards of qualification, licensing, professionalism and ethical conduct for auctioneers. 

The  SA Institute of Auctioneers is also in the process of rooting out rogue elements who perpetrate corrupt and fraudulent activities within the auction industry in conjunction with the NCC, the EAAB and the National Prosecuting Authority (NPA), which will also aid the long-term transformation of the industry.