A legal skirmish has erupted between the suspended CEO of SA's property industry watchdog and the minister of human settlements.
Property Practitioners Regulatory Authority CEO Mamodupi Mohlala has hauled minister Mmamoloko Kubayi and the newly appointed board of the PPRA to court over her suspension.
In an urgent application to the high court in Johannesburg on Friday, Mohlala was scathing of Kubayi and the board.
In her affidavit, she said Kubayi illegally appointed the board, chaired by Steven Ngubeni, and accused the board of lying in a media statement announcing her suspension.
She said the board had made unlawful demands on her, and she said Ngubeni had instructed her to terminate service providers’ contracts and replace them with companies he would nominate.
“I refused to accede to demands made by [Ngubeni and board member Shaheed Peters] and I verily believe that my suspension is as a result of my refusal to do so,” she said.
“I therefore reasonably believe that my suspension is motivated by an ulterior purpose. It is also noteworthy that there had been interference by board members in procurement.”
Mohlala has been at the helm of the property industry regulator, previously known as the Estate Agency Affairs Board (EAAB), since 2019.
The board placed her on precautionary suspension on Thursday after an anonymous whistle-blower accused her of misconduct in relation to staff appointments and pension deductions.
“The board unanimously believes that it is in the best interest of the organisation to place the CEO on suspension to allow for an objective, independent and impartial investigation into the allegations,” it said. “The chief executive has been duly informed of the allegations against her.”
DA MP Emma Powell, who had called for Mohlala’s suspension, said: “Late last year, the Pension Funds Adjudicator tribunal found that Mohlala 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.
“Other employees who joined the employer on the same date and on the same terms were registered as members of the fund. It is not clear why five of these recruits were given special exemption by the CEO.
“In its finding, the tribunal noted that the CEO's lack of regard for compliance with the rules of the fund was of serious concern and that she ‘perceives her role within the employer as including overriding the rules of the fund’.
“The entity was ordered to pay all arrear contributions plus late payment interest backdated to July 2019 — resulting in fruitless and wasteful expenditure in excess of R1m.”
In her affidavit, Mohlala said Kubayi’s predecessor, Lindiwe Sisulu, extended the previous board's tenure by making it a “transitional board” pending the establishment of the PPRA.
Kubayi terminated the transitional board before the Property Practitioners Act came into operation on February 1, she said.
• In 2012, Mamodupi Mohlala made three unsuccessful labour court applications to keep her job as head of the National Consumer Commission after then trade & industry minister Rob Davies placed the commission under administration and refused to renew her contract
— COURT VETERAN
“In fact, the termination of the EAAB board happened on 25 November 2021 without any prior notice to either members of the EAAB board or myself as the CEO.”
Mohlala said the appointment of the new board was invalid and any decision it took would not stand. Mohlala said most of the allegations against her were subject to a legal process or had been dealt with.
“What is furthermore important to note is that many of the issues have either been thoroughly investigated by the social and ethics committee of the EAAB board and the auditor-general, which investigations cleared me of any wrongdoings,” her affidavit said.
Mohlala accused the board of lying in its press statement. “It is alleged in the press statement that I was informed of my suspension on 22 March 2022. This is plainly false.
“I learnt about my suspension from the media following the press release issued by [the PPRA]. The news was devastating and humiliating to me.”
On Friday Kubayi filed a notice to oppose Mohlala's application. “It is the most absurd thing for Ms Mohlala to question the powers of the minister to appoint a board,” said Hlengiwe Nhlabathi-Mokota, Kubayi’s spokesperson.
“The investigation was a result of a whistle-blower who complained to the Public Service Commission. In turn, the PSC forwarded the complaint to the minister.
“In adherence to good governance, minister Kubayi requested the board to deal with this and report back so that she can in turn write a report to the PSC. We believe that Ms Mohlala must give the process an opportunity.
“In a statement issued by the board, it is clearly stipulated that her suspension is in no way a verdict that she is guilty. The minister is obligated to act on matters referred to her by the PSC and provide them with a written response.”
Ngubeni said the board would also challenge the lawsuit.
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