THE financial health of a building or complex is up to its trustees, and they need to recognise this responsibility and be committed to fulfilling it.

Marina Constas, a specialist sectional title attorney and a director at BBM Attorneys, says managing agents are simply a conduit.

"This is just one of the harsh lessons to be learnt from the recent Constantia Sectional Title Management (CSTM) debacle," says Ms Constas, who is making applications to the curator on behalf of buildings affected by the CSTM issue.

She says the CSTM matter went far further than simply allowing the law to take its course.

"Trustees — and owners within the complexes they represent — need to take their responsibilities far more seriously if they are to avoid the risk of their interests being compromised in situations such as this," Ms Constas says.

CSTM was forced to close at the end of last month after the South Gauteng High Court granted an interdict preventing the company from operating.

The Estate Agency Affairs Board instituted proceedings against CSTM in April following allegations of misuse of its trust fund. The company administered 450 bodies corporate, receiving about 20 000 monthly payments.

Essential services, including rates, water and electricity, have not been paid to the municipalities on behalf of many of these complexes.

Ms Constas says Lawrence Moepi’s job as curator is to carry out a financial audit of CSTM’s accounts and assess what is missing.

She says this will probably be a long process and funds will only be released to a body corporate once the audit has been completed.

Source: Business Day