Standard Bank intends lodging an urgent application in the Johannesburg High Court for the liquidation of Wendy Machanik Properties (WMP). Standard Bank says that the company was granted a R3-million overdraft facility, bank guarantees of R40k and a corporate credit card with a R55k limit.
In papers lodged with the court, Standard Bank says it is owed R1,65-million, plus interest. Former employees have demanded R598 662 from her as well.
The bank says that its application is urgent because the conveyancing attorneys working for WMP are expected to register various properties sold by the company on Friday. When properties are registered, the attorneys pay commissions due on the sale.
According to Machanik’s lawyer, Cyril Ziman, Machanik might not oppose the application because, he says, it will expedite the payment of commission to former employees of the company.
He says that by not opposing the application, Machanik is not conceding the correctness of the allegations.
Standard Bank’s decision to launch the application for the liquidation of WMP was based on the Estate Agency Affairs Board’s decision not to grant a Fidelity Fund certificate to the estate agency and to stop Machanik from trading.
Bank attorney, Paul Winer says that WMP and Machanik are not trading because the Fidelity Fund certificate has been withheld and implies that she will not be able to pay the overdraft or any other amounts that the bank is owed.
Machanik is believed to be worth about R133-million but has debts amounting to about R80-million.
Meanwhile, Rob Williams, the Minister of Trade and Industry has met with the EAAB and insisted that it rid the industry of what he called “bad apples”.
The EAAB is currently investigating other high profile estate agencies, Seeff Properties and Wakefields, after a fractional title scheme at Zimbali left investors in debt.
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