Agriculturists should be wary of fly-by-night auctioneers that do not intend to fulfil their obligations to deliver goods. Often these fake online auctions also provide alternative goods that are not what the customers bid for.
This warning comes from the South African Institute of Auctioneers (SAIA) who say there has also been a recent increase in problems associated with the refunding of deposits by fake auctioneers.
SAIA reports that Covid-19 lockdown restrictions have led to an unprecedented migration to online auctions as a means of selling anything from properties and cars to office furniture and even household goods.
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New online auctioneers are emerging, often using social media marketing to encourage buyers to bid or make offers on goods. Buyers in the agricultural sector can easily be conned into participating in a sale process or so-called auction that is not transparent, legal, or safe.
Among the recent victims count well-known Merino stud breeder Eddie Prinsloo who was bamboozled in a R4.9 million transaction.
Prinsloo is the owner of the Heuningkrans farm in Smithfield in the Free State. He is known as a land reform champion after giving seven workers title deeds in his Donkerhoek project.
Who are you dealing with?
Now the SAIA detected an uptick in complaints levelled at dishonest online auctioneers.
“Unfortunately, it is only when problems arise that bidders realise, they are dealing with unprofessional sellers purporting to be bona fide auctioneers.
“This should send a clear message to the public to only deal with professional, registered auctioneers who are members of SAIA,” says SAIA chairperson, John Cowing.
“Before committing to purchase on a so-called auction site, a simple check on the SAIA website will dispel any concerns you may have. Our members have remained resilient in the face of the pandemic and are among the leaders in online auctioneering.”
Cowing says the institute’s members comply with all requirements to ensure honest and fair online auctions. Most will display their membership credentials on their website, which can be verified by SAIA’s office if the bidder has any doubt.
“Our members are responsible custodians of assets, who prescribe to our code of conduct. You are well advised to establish whom you are dealing with before parting with your money. These online auctions are putting a stain on our industry and we hope in time, with legislation, we will be able to eradicate these illicit traders.
“While we actively promote the growth of the industry and the uptake of new technologies, we do not support these organised crime syndicates. You can often find bargains at auction but, if it sounds too good to be true, it probably is.”
