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Human Settlements Minister Tokyo Sexwale has put the Estate Agency Affairs Board (EAAB)under administration to prevent it from further collapse and has at the same time instituted a full investigation into the affairs of the Board.

The Board has been rocked by internal strife and instability in recent months following the resignation of its chairperson Ina Wilken, the acrimonious parting of ways with its former chief executive officer Nomonde Mapetla, the suspension of its company secretary and the resignation of a number of Board members. Out of 15 Board members only three remained.

Sexwale announced at the breakfast meeting with stakeholders at the Sandton Convention Centre this morning that:

• he had put the EAAB under administration
• the Department will commence with due diligence to understand what it was inheriting
• a full investigation to be conducted by the Special Investigating Unit into the affairs of the Board
• governance issues - Board appointment, and the CEO, will be the next steps to follow
• legislative review: to bring the institution in line with Human Settlements imperative.

“Many of you, gathering here this morning, have put so much effort into the sector, made crucial investments, only to see those inputs undone by ongoing shenanigans. It has become very clear that the industry has lost faith in the EAAB,” said Sexwale told industry players at the Sandton Convention Centre this morning.

“Your house is in disarray and that is why I called you. We have to crack the whip. I’ll need everyone’s cooperation about the knowns and the unknowns. Spring cleaning the house is what has to happen now. For me there is no compromise of governance.”

He had asked the chairperson whether her resignation had anything to do with “the fire coming out of the roof”. Sexwale had planned to meet with the Board before “things started falling apart”.

Cabinet initiated a process of transferring the Estate Agency Affairs from the Department of Trade and Industry to Human Settlements. This followed the decision to have all Human Settlements related legislation and laws to be located within the Department.

In the 2012 Budget Speech, Sexwale announced to the nation that the Estate Agency Affairs has been proclaimed to be part of Human Settlements.

“The Real Estate Agency Industry is critical for the deracialisation and transformation of human settlements landscape in the country. It has a huge potential to become a catalyst for economic growth,” said Sexwale.