MAIN IMAGE: Steven Ngubeni, PPRA Chairman; Mamodupi Mohlala-Mulaudzi, suspended EAAB CEO
Danie Keet
Various members of the PPRA are facing suspension with immediate effect following findings of a forensic report into irregularities and fraud at the now defunct EAAB released on Wednesday.
The PPRA Board announced that the findings are giving rise to further serious allegations against the CEO and other members of the staff and the Board has resolved to refer criminal allegations against staff members at the PPRA to the Public Protector – negotiations have already commenced.
A host of charges of misconduct, procurement irregularities and corruption, were brought to the attention of the Minister of Human Settlements, Mmamoloko Kubayi, by a whistle blower in December 2021 and immediate steps were taken by the newly appointed PPRA board and its Chairman, Steven Ngubeni, to investigate these allegations.
Following on a Board decision, Mamodupi Mohlala-Mulaudzi, then CEO, was suspended and faced a disciplinary hearing into these allegations. She has since elected not to comment on any of the allegations against her or answer any questions addressed to her and is taking the matter to the CCMA. She was served with a charge sheet on 15 July.
In reaction to the findings of a forensic investigation conducted by independent forensic investigators Kettle Consulting, Steven Ngubeni, PPRA Chairman, said the PPRA Board is committed to get its house in order to allow them to focus on serving the property industry to their full capacity.
“We owe it to stakeholders in the industry to manage an efficient, transparent, and reliable service and in support of our mandate, we will clean out our organisation to be able to do this. It is our duty to fight corruption in our organisation, but also in the bigger South Africa to the benefit of the PPRA and property practitioners nationally.”
Ngubeni emphasised the fact that this process is not a fight between the Board and employees of the PPRA, but that they are acting on instructions from the Minister to solve the allegations levelled at various people within the organisation.
“These allegations do not only pertain to the now suspended CEO, but to various people, both on senior and junior management level and in various departments, including procurement and HR. These will all be managed according to the relevant labour law processes, and we will ensure that it is a transparent and fair process.”
Allegations facing Mulaudzi include:
- Ignoring Human Resources (HR) policy and provisions of the Labour Relations Act
- Irregular appointment of staff members not qualified for certain positions
- Instructing non-payment of pension fund contributions, resulting in a loss of R1,6 million for the PPRA
- Payment for an App destined to support property practitioners. Payment of more than R3.6 million was approved by her but the App was never operationalised.
- Transgression of numerous procurement requirements leading to irregular, fruitless and wasteful expenditure.
- Payment for 1500 study guides was done without delivery. Of these more than 1 200 cannot be traced anywhere within the PPRA.
- Default payments of R378 000 were made for a function for a Namibian delegation of three, alleging that 120 people attended the function whereas only 40 were present. Mulaudzi approved this payment.
- There are also various allegations of misconduct, irregular procurement processes and not following standing policy of the PPRA and other relevant entities.
Jan le Roux, Rebosa CE, in his reaction to the latest events, said it is heartening to see that the PPRA Board and Ngubeni have acted decisively on these allegations.
“The situation at the EAAB was intolerable but due to the decisive interventions by Ngubeni and the Board the damage is being curtailed and steps are being taken to normalise the situation at the PPRA. The industry is waiting with bated breath to view the outcome of the current processes and is looking forward to a regulatory authority on which they can rely on for much needed support.
“We are encouraged by the stern approach to this important matter and are confident that Ngubeni will see the process through”.
Ngubeni has also met with the National Property Practitioners Council (NPPC) for an extensive briefing on the current situation and progress with the investigations.
