The Estate Agency Industry is one of the key drivers of our economy. It affects both residential as well as industrial estates.

• The Estate Agency Industry is one of the key drivers of our economy. It affects both residential as well as industrial estates.
• The total South African property market is slightly below 5 trillion rands – at 4, 9 trillion.
• More than 60 percent of this total is attributable to the residential property market sector.
• In this context, the Estate Agency Affairs Board is a regulatory institution governed by the Estate Agency Affairs Act of 1976 and following a Presidential Proclamation now is governed no longer under Trade and Industry but the Department of Human Settlements.
• The property market encompasses investments arising from bonds, mortgages, loans, salaries and wages of citizens. In a word, this market reflects accumulated incomes of people over a period.
• Therefore the integrity of this industry must always be above reproach.
• For this reason, there was a great deal of consternation last year when the Real Estate Agency Affairs Board which under the Ministry provides regulatory oversight to the industry was wracked by instability which included inter alia:
  • The Wendy Mechanik saga
  • The acrimonious parting of ways with its CEO Ms. Nomonde Mapetla
  • The Action Alliance debacle
  • Suspension of the Company Secretary
  • And finally, the resignation of its chairperson Ms. Ina Wilken
     
• All these circumstances and other factors compelled me, as Minister, to dissolve the dysfunctional Board.
• As is known, in its place, in terms of the Act, my intervention was to put the EAAB under administration by appointing an independent person - Mr. Taswell Papier as Administrator.
• He was tasked with amongst others
  • Restoring stability
  • Regularizing the EAAB
  • Facilitating as well as implementing good corporate governance processes within the Agency, and
  • To report back within six months.
     
• Therefore, as Minister, I have not been disappointed with the excellent manner in which he has performed the task to the extent of achieving his mandate which has come to a conclusion.
• Mr. Papier is available for the month of March in order ensure a smooth hand-over to the new Board.
• On behalf of government I wish to thank him for a job well done within the given time.
• To appoint the Board, an independent selection and interview process was put in place.
• It gives me satisfaction to announce the following people as members of the new Board:
  • Mr. Betheul Nsibande
  • Dr Fazel Randera
  • Mr. Sikander Kajee
  • Ms. Ewaldina Porteous
  • Ms. Jill Corfeld
  • Ms. Seeng Lebenya-Ntazi
  • Professor Kwandile Kondlo
  • Mr. Andile Ben-Mazwi
  • Ms. Dineo Molomo
  • Mrs Maletsatsi Maceba-Wotini
  • Advocate Tshepo Maake
  • Mr. Rhulani Marivate
  • Ms. Jabhile Mbele
  • Mr. Leo Mlambo
  • Mr. Damane

The Act prescribes three categories from where people can be selected and this has been complied with.

• Five from the estate agency industry
• Five from civil society, representing consumer interests, and
• Five from related professions and institutions such as the legal profession, financial institutions, property owners and developers.

• Under the current Act, at the first meeting of the Board, members would choose their own Chairperson.
• Subsequently, the Board is expected initiate the process of identifying an employee – a new CEO – whose duties would be to provide leadership within the executive and staff.
• In conclusion, it is instructive to reflect upon the Estate Agency Affairs Summit, the first of its kind in South Africa, which was convened by the Ministry and Department late last year.
• It was attended by more than 600 delegates representing 40 000 Estate Agents from many agencies and companies across the country.
• The Summit, amongst others, pronounced upon the following:
  • To address concerns around the Act. In my view the Act may need to be amended or repealed, but most certainly it cannot stay the same.
  • Some at the Summit expressed disquiet about the Estate Agents Fidelity Fund. We are satisfied with the report of the Administrator that there has not been any form of plundering. At the same time we remain committed to ensuring that there is total transparency around this Fund to avoid any suspicions.
  • Transformation became a key point of discussion, with the observation that the industry has performed extremely poorly on transformation. It cannot be correct that Black people are only five percent of the 40 000 Estate Agents and women of all colours are only slightly above 25 percent, with Black women being around 500 of the 11 000. The industry is called upon to fast track its transformatory efforts. Without doubt, the new Act will address those issues.
  • Investigation on any corruption within the industry were expressed at the Summit and assurances are given that the SIU which I as Minister has mandated to investigate will hopefully provide us with a report in due course regarding all matters around the investigations.

• The tasks facing the new board are not only a challenging but could also be exciting. The litmus test of the success of the new Board will be premised upon good governance, integrity of their processed, credibility of their decisions, transparency as well as constant interaction with their members for the public good. After all, this is about accumulated incomes, investments and assets of citizens. We wish them well.