Mwangi Githahu mwangi.githahu@inl.co.za AS DATA from Statistics South Africa (Stats SA) on liquidations and insolvencies for January 2022 reveals, the number of liquidations continues to be a concern, and although there has been a decrease year on year, the number of company liquidations has increased.
The number of liquidations and insolvencies aside for this period, risk experts have continued to caution consumers about unethical liquidation practices in South Africa.
In an article published on its company blog, niche liability and surety brokerage, Shackleton Risk Management, said that historically, and even currently, “some liquidators, banks and auction houses have resorted to unethical, fraudulent or corrupt business practices in order to generate benefits from liquidations”.
Shackleton Risk wrote that one of these methods includes the use of the kickback payment scheme, which…