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Police investigate former EAAB members   Article Date :14 Jun 2006 Follow-up on irregularities Pretoria - A number of criminal offences allegedly committed by former members of the Estate Agency Affairs Board (EAAB), the statutory consumer protection body for the property industry, are being investigated by the SA Police Service's commercial crime unit. Clive Ashpol, the EAAB's legal advice manager, said the commercial crime unit was investigating specific charges against former board members in accordance with the findings of the forensic investigation conducted by auditors KPMG. These alleged offences were fraud, theft, theft by false pretences and contraventions of the Public Finance Management Act, Ashpol said. The EAAB has not been prepared to comment on the amount of money involved in the financial irregularities. Ashpol said the matter had been referred by the EAAB to the commercial crime unit in April and the EAAB was now waiting for the unit to conclude its investigation. He did not know who was implicated in the forensic audit report because he had not read it. However, he said "anybody fingered" in the report would come under scrutiny from the commercial crime unit. Astrid Ludin, the deputy director-general for consumer and corporate regulation at the department of trade and industry, said earlier this year that the forensic audit involved an assessment of all the claims submitted by board members of the EAAB since their appointment in 2003. After considering the forensic audit report, trade and industry minister Mandisi Mpahlwa earlier this year requested the resignation of the seven remaining members of the EAAB's board. Five members of the EAAB's board resigned last year following the completion of the forensic audit. In January Lindiwe Bulo, the EAAB's secretary, confirmed that some of the board members involved in the alleged financial irregularities had repaid the board, but criminal charges would be laid against board members implicated by the forensic audit irrespective of whether or not they had repaid the money to the board. Nomonde Mapetla, the EAAB's chief executive, said at the time the board's fidelity fund, which is used to pay consumer claims following misappropriation of trust money by estate agents, was financially sound and had not in any way been compromised by the alleged criminal actions of some of the EAAB's board members. Ashpol confirmed last week that the department of trade and industry had appointed an interim board comprising officials from the department, which would appoint a new board. He said the appointment of new members of the board should be finalised within the next three months. Published on the web by Business Report on June 12, 2006. © Business Report 2006. All rights reserved. CLICK HERE TO RETURN TO THE MAIN NEWS PAGE