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Auctioneers sued by State for monies owed

Two government departments are taking legal action against Sizwe Auctions for allegedly failing to deposit auction proceeds into the state revenue account. The North West department of finance and the Mpumalanga department of public works, roads and transport are embroiled in a legal battle to get monies allegedly owed to them by the company. The departments have since blacklisted Sizwe Auctions (Pty) Ltd and its directors, BC Khanyile and Jacob Khanyile.

North West finance department spokeswoman Kesalopa Gill said the company was appointed by the North West provincial government through the department for a tender for the procurement of auctioneering services for three years. Gill said the contract was from August 1 2010 to July 31 2013. "The directors failed to deposit auction proceeds into the provincial government revenue account as per contract conditions. "They misrepresented facts by submitting an invalid proof of payment purportedly bearing the stamp of Rand Merchant Bank. The department has proven that the money was never deposited.

"The matter has been handed over to the office of the state attorney through the department of public works, roads and transport." Gill said she could not divulge how much the entity owed the department because of the ongoing court case. "They were responsible for the auctioning of the provincial government's scrap machinery and vehicles. "A contract was entered into with Sizwe Auctions (Pty) Ltd, however as per provisions of the Public Finance Management Act, Treasury regulations and supply chain management prescripts, the restriction applies to the entity, and all its owners/directors," Gill said.

She said the entity was not paid by government but got a commission which was based on 4.5% of the buyers' commission. Mpumalanga department of public works, roads and transport spokesman David Nkambule said: "Legal actions were initiated against the company and its directors, therefore the department cannot comment as this matter is sub judice." Attempts to get comments from the company failed. An email inquiry went unanswered.

Source: Sowetan
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