IEASA National - News

The industry continues to hold its breath   Article Date :28 Oct 2005 Still waiting for response from DTI to EAAB forensic audit. The Estate Agency Affairs Board, a body of 12 (it should in fact be 15 members according to the act) trusted people, appointed by the State to police the real estate industry and in doing so protect consumer interests has questionably failed in both its appointed roles. Gathering dust on the desk of the Minister of Trade and Industry Mandisi Mpahlwa for his action is a forensic report naming individual board members and irregularities by individuals that also includes comments about the board and the performance of its duties. Allegations of these irregularities apparently relate to the redecorating of the EAAB's offices, false claims for training that was not provided, false expense claims, irregular promotions and "jobs for pals." A major concern for the industry today is that while the forensic report was initiated in February and assuming the allegations have been authenticated, why has the Minister not already instituted action against board members implicated in any wrong-doing or named and shamed the guilty? Even allowing for sufficient time to compile an intricate report there appears a lack of transparency in failing to announce the existence of such a report. Its possible implications and subsequent lack of corrective action has done little for an industry that, often unfairly, enjoys a questionable ethical reputation. The Department of Trade & Industry's apparent lack of action over the report also continues to taint the reputation and the honour and integrity of the honest board members with the clouds of suspicion shrouding the deeds of the pretenders to responsibility and righteousness. Of course raps across the knuckles may have already been delivered upon light fingers, but if this is the case, surely the raps should have been loud enough to be heard by the 64 000 agents contributing to funding the board. For too long now the industry has reverberated with whispers of the Board's extreme extravagances and irregularities. Its ailing reputation has been further fuelled by administrative incompetence over its handling of board examinations and the woefully slow renewal of estate agent fidelity fund certificates. A credential that agents must have in their possession in order to receive commission on sales. The board's administrative standing among rank and file has slumped to an all time low. Efforts to reach its services or offices by fax or phone have become legendary in squandered rand and time values. So serious had it become that key industry leaders were reportedly despatched earlier this year to confront board management over its front line service levels. And in spite of recognition and acknowledgement of such faults and top-level assurances it appears little headway has been made. Obviously, how could it have, when the board had other more important issues on hand! Bill Rawson, president of the Institute of Estate Agents in his reaction to the long time in coming official acknowledgement of the existence of the forensic report rates its implications as "huge". He questions how a regulatory body could ask an industry to maintain high standards when their own standards are dismal. He also begs the question why there is no evidence of any concern by the DTI about deteriorating standards and questionable practices by the Board. Rawson, who heads up the increasingly powerful Institute, has a right to answers, especially in view of the Board's seemingly lack of encouragement given the Institute's active empowerment policies and actions. Just recently Vivien Marks, general manager of the Western Cape region, branded the board as a "toothless bulldog" and criticised its CEO, Nomonde Mapetla for refusing to come to Cape Town to attend the region's proud graduation of a group of black agents. Marks echoes the apprehensive conscience of many of the industry's traditional captains and the collective concerns of black agents, who, for the past five years have lamented any cohesive or structured initiatives by the Board to salve their long frustrated march toward emancipation and industry equality. On numerous occasions the EAAB has parroted its commitment on empowerment as its greatest priority. Such determination was trumpeted by former CEO (then general manager) Stanley Moshidi on his appointment back in 1999 when one of his earliest commitments was to a near all black staffing of the Board, but fell well short of seeding similar ambition among black agents. Equally vigorous, but apparently unfulfilled declarations, have been made with frequency by the Board's personable chairman Linda Nyembe, who appears to have now hastily severed his ties with the board. Surely, now with proof of incompetence and corruption at his fingertips, if proven to be unquestionably accurate, and a verifiable track record of little more than lip service to empowerment the Minister of Trade & Industries can take swift and decisive action in rebuilding a board of principled and honest members able and willing to fulfil their tasks. Real estate industry captains have for years recognised that the field role of the professional black agent promises one of the most direct and successful routes to home-ownership education of township folk. They share common languages, common backgrounds and most of all deep-rooted common aspirations in becoming a homeowner. Surely now is the time they were given the tools to do the job. CLICK HERE TO RETURN TO THE MAIN NEWS PAGE