A forensic investigation into the Property Practitioners Regulatory Authority (PPRA) has confirmed maladministration, fraudulent appointments and misappropriation of pension funds following a whistle-blower’s allegations against its suspended chief executive, Mamodupi Mohlala.
The investigation revealed evidence of flouting of procurement process and collusion with service providers, misrepresentation on the appointment of service providers where goods were not delivered but paid for, flouting of the Pension Fund Act and the irregular appointment of staff, some of whom did not meet the minimum qualification requirements, PPRA board member Pamela Makhubela said at a briefing yesterday.
Chairperson Steve Ngubeni said they had received a whistle-blower report from the Public Service Commission in December 2021, which had prompted the board to commission an investigation. He said Mohlala had opted not to reply to the allegations, despite their best attempts to get her to do so.
The PPRA, which replaced the Estate Agency Affairs Board in February, has as its main functions to regulate property practitioners’ affairs, to promote transformation in the sector and to provide consumer protection.
Mohlala was put under temporary suspension already in March, and Ngubeni yesterday acknowledged that the corruption, which had implicated a number of staff and senior management, had resulted in the PPRA not being able to fulfil its mandate properly.
“We owe the industry the biggest apology for this,” he said.
Some of the incidents that were uncovered in the investigation included that some 1 000 out of an order for 1 500 study guides were not delivered or never bought; the false charging for the expenses of 120 delegates from Namibia last year, when in fact there were only 40 delegates, and charging these expenses for three days, when in fact they only visited for two days.
Other corruption included the falsification of National Treasury approvals for procurement, the non-payment of funds to the pension fund as required, and the appointment of individuals outside of budget and without required skills or qualifications.
Makhubela said it was important that the organisation start with its work on a “clean slate”, that it employed people who were beyond reproach, and disciplinary processes would begin with the implicated staff, and criminal charges would be laid where necessary.
Late in 2021, the Pension Funds Adjudicator tribunal found that Mohlala had disregarded scheme rules when she allegedly instructed the entity’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.
Ngubeni said they had since established various new board committees, and had delegated new management authorities, so that the organisation would never again be in a position where one person could control all of the affairs of the organisation.
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