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Jun 25, 2012:
The Estate Agency Affairs Board (EAAB) has come under fire for its perceived incompetence as a regulator and industry leader in the property sector.
Seeff chairman, Samuel Seeff, says the EAAB could step up to the plate more by engaging industry and market leaders as well as dealmakers.
He also criticised service levels within the EAAB which critics say are seriously lacking. A plethora of industry complaints include calls going unanswered, reports of estate agents operating without the mandatory fidelity fund certificates not being investigated by the board and the agency not taking the lead in guiding the sector.
During interviews with a number of leading estate agencies across the country about the recent gazetting of the property charter, it became clear that the EAAB was perceived to be distant both as a regulator and an industry leader. The charter was finally gazetted in June 2012 after first being mooted more than eight years ago as an instrument to transform the sector.
Reference was often made during the interviews to the agency’s former chair, Thami Bolani, whom many cited as a breath of fresh air who had injected fresh impetus into the EAAB. Bolani was controversially suspended from the board by the Department of Trade and Industry in August 2011, pending an investigation into his dealings with the NCF Consulting Enterprises.
Bolani subsequently joined the NCF as its chair after leaving the EAAB. Speaking to Moneyweb about life after the board, he said: “It is my greatest regret that I could not finish my work there. I strongly believe we were on course to transform the industry to make sure it was better regulated and that consumers were better protected and that black estate agents were also empowered. I do regret that I was unable to complete that task. I could see where we were going …we had the support of the industry.
“I thought it was a job that everybody was in full support of and all of us had the same vision that things had to change… for the better for both estate agents and consumers and we were on track. But, some forces decided to put an end to that and that’s what we regret.”
Estate agents said the EAAB needed to expand beyond a regulatory body to one that actively engaged the industry by assisting with empowerment and other crucial roles like monitoring the sector, protecting consumers by acting against illegal operators and leading by example.
The EAAB in response to the accusations defended itself by saying: “The EAAB, mindful of criticism of stakeholders has implemented innovative policies and procedures designed to facilitate such matters as the timeous issue of fidelity fund certificates to applicants, enhancement of the services offered by the call centre and generally speaking, making the EAAB more accessible to its stakeholders.
“In conclusion, the EAAB remains committed to ensuring that it fulfills its statutory and regulatory mandate in the most effective and efficient manner possible and that by so doing, consumers are fully protected with their dealing with estate agents while the legitimate interest of estate agents are not neglected.”
While stakeholders have been reluctant to elaborate on problems with the regulatory body, it is clear that there is general dissatisfaction with the way in which it is operating.