SECTIONAL TITLE MANAGING AGENT IN LIQUIDATION – SCHEMES IN DISTRESS
In or around 2010, Constantia Sectional Title Management in Gauteng, which at the time managed more than 400 bodies corporate, misappropriated funds belonging to its clients amounting to approximately R80-million and was placed in liquidation. The CSOS has recently been alerted to the distressing information that another company on the West Rand, that managed in the region of 114 sectional title schemes, has done the same thing! We are unable to assist the affected bodies corporate as the matter is in the hands of the Court and the PPRA (the Property Practitioners Regulatory Authority). We strongly advise the affected Bodies Corporate to lodge claims against their own fidelity insurance as soon as possible. The CSOS warns every body corporate to ensure, in the interests of its own long-term peace of mind, that all monies received by it are deposited into a bank account that is in its own name, and that a Trustee/Trustees not only have signing power on the account, but authorise all payments themselves.