Africa-Press – South-Africa. State-run regulator the Property Practitioners Regulatory Authority has apologised in the wake of a damning forensic probe into allegations of misconduct by its suspended CEO, Mamodupi Mohlala, saying there can never again be a situation where the power lies with one person to “make decisions like running a spaza shop”.
The probe found large-scale mismanagement and irregular appointments, as well as instances of fraud under Mohlala’s watch.
Speaking at a briefing on the forensic report on Wednesday, PPRA chair Steven Ngubeni said: “One should prevent having an over-dominant figure in the organisation. This will never happen again. We intend to recruit people beyond reproach and with credibility in the industry to ensure sustainability. We intend to ensure transparency.”
On 28 March 2022, the board placed Mohlala on a precautionary suspension and began a forensic investigation with the help of independent forensic investigation firm Kettle Consulting. The report was completed late in August.
According to the board, the report clearly illustrated Mohlala’s role in failing to ensure that pension fund contributions were collected and paid to the fund, instructing that the contributions must not be made.
The report also found she signed off on irregular appointments for positions not on the PPRA structure and not included in the approved budget. In some cases, people without the required minimum skills and qualifications were appointed to key positions in the organisation, including in supply chain management.
The forensic report highlighted “a discomforting arrangement” where supply chain management was instructed to report directly to Mohlala instead of the chief financial officer, in contravention of the Public Finance Management Act.
Confidential HR files of staff members implicated in flouting procurement processes or for irregular appointments were removed “at the behest” of Mohlala and, to date, could not be traced, according to the report. This resulted in a lack of documentary evidence to verify that the required recruitment and selection processes were followed.
Examples of supply chain management processes being disregarded include almost 1 206 study guides ordered but never delivered. Yet, the supply chain officer instructed the finance department to make a payment of R401 000, and Mohlala signed this off, the probe found.
She also approved an out-of-budget payment of R495 000 to Rural Brand Technologies to develop a PPRA app to handle applications and the issuing of Fidelity Fund Certificates. The app is still not functioning. The procurement of Rural Brand required National Treasury approval, which was forged.
Ngubeni said during the briefing that some of the irregularities occurred as far back as 2011, and others as recently as February 2022. Some senior management and some junior staff are also implicated in the forensic report. They have not yet been named nor suspended, as they first have to be formally notified of the findings against them. No previous board members are being investigated at this point.
On 13 July 2022, based on the then preliminary findings of the forensics report, the board started disciplinary procedures against Mohlala. During the forensic investigation, she did not respond to requests for interaction and information from the investigators. As for the disciplinary procedures, she has opted to instead have the matter heard by the CCMA. The case is set to be heard later in October.
The board is seeking legal advice on how to proceed with the suspension of those others implicated in the forensics report. This will involve internal disciplinary procedures, criminal charges where applicable, and recouping financial losses from those implicated.
The board is also cooperating with the Public Protector’s inquiry into the alleged irregularities by Mohlala and others. Ngubeni emphasised during the briefing that the PPRA board now wants stability in the organisation so it can focus on its actual mandate, namely the transformation of the property industry.
“This [forensic] matter is nothing but an unfortunate sidetrack that we look forward to conclude. We owe the industry an apology,” he said.
Mechanisms will be put in place to avoid irregularities at the PPRA in the future. For example, Makhubela said the board created different committees to oversee various aspects of the organisation. Workshops on policies are also taking place.
“We are taking all of this very seriously. We found the PPRA very challenged. We are clear that we will act with immediate effect regarding individuals implicated. Against some, it might take longer to conclude than against others,” said Makhubela.
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