By Lehlohonolo Lehana.
Suspended Property Practitioner Regulatory Authority (PPRA) CEO Mamodupi Mohlala is to face a disciplinary hearing, while alleged criminal acts by her will be reported to law enforcement agencies.
A forensics investigation has found Mohlala guilty of various acts of wrongdoing including flouting procurement processes and wasteful expenditure that has cost the organisation millions of rands.
Certain other PPRA employees who have also been implicated in alleged offences will also be charged.
The allegations against Mohlala include:
°Contravention of pension fund legislation by failing to make contributions to the pension fund; and
°Irregular appointments of personnel, including flouting processes, making appointments to non-existing positions and appointing under-qualified persons.
The pension fund legislation contraventions follow a finding by the Pension Funds Adjudicator Tribunal in 2021 that Mohlala disregarded scheme rules when she allegedly instructed the PPRA’s human resources department to suspend the deduction of pension fund contributions for five new employees, while other employees who joined the PPRA on the same date and on the same terms were registered as members of the fund.
It is unclear why these PPRA employees were treated differently.
The tribunal ordered the PPRA to pay all arrear contributions plus late payment interest backdated to July 2019, resulting in fruitless and wasteful expenditure in excess of R1 million.
Further allegations, evidence
The PPRA board added on Wednesday that the investigators were also furnished with further allegations and evidence during their investigation related to:
°The flouting of procurement processes; and
°Irregular, fruitless and wasteful expenditure.
PPRA staff members also reported serious acts of criminality, including intentional misrepresentation, fraud and corruption.
The PPRA board said the forensic investigation is still continuing.
The allegations and charges Mohlala will face follow the board receiving a ‘whistleblowers’ report in December 2021 from the Public Service Commission, through Minister of Human Settlements Mmamoloko ‘Nkhensani’ Kubayi.
She accepted this opportunity and made a submission to the board.
However, the board decided to place her on precautionary suspension on full pay on 25 March 2022, pending a forensic investigation, due to the inadequacy of her responses to the allegations.
Mohlala responded by launching an application in the South Gauteng High Court to overturn her precautionary suspension.
The application, which questioned the legality of the process to appoint the PPRA board by the minister (Kubayi), was unsuccessful.
The PPRA is a state-run watchdog that is meant to protect existing and prospective homeowners from unscrupulous practices by real estate agents in South Africa’s R5.8-trillion property sector. It also regulates other affairs of the broader property sector.