Regulator spends R3.6m on useless app
Two forensic investigations into the Property Practitioners Regulatory Authority (PPRA) revealed that the body had spent millions of rand on an app that never worked, reports the municipal press.
Reports also revealed that suspended CEO Mamodupi Mohlala failed to consider proper supply chain management processes when she procured the app.
Lawyers for Malatji & Co discovered that R3.6 million had been paid to software company Rural Brand Technologies (RBT) to develop the mobile app which never worked.
The report recommends that the PPRA stop using the RBT app and that all employees involved, including Mohlala, be disciplined.
“It is clear from the information provided to us… that the app is not functional. Accordingly, RBT’s performance against the agreement is flawed and as such there is no reason for the PPRA to make any further payments to RBT,” the report states.
Investigators also found that there had been no bidding process prior to RBT’s appointment and that Mohlala had instead attempted to follow an unsolicited bidding route.
“However, the PPRA did not follow the unsolicited tender process as set out in Practice Note 11,” explained Malatji & Co Attorneys.
“This was because the proposal did not meet the requirements set out in the practice note, and the PPRA did not undertake the evaluation process described therein. It is on this basis that the PPRA had to reject RBT’s proposal.
Mohlala denied these allegations:
“I deny all allegations of irregularities in purchases resulting in irregular and/or wasteful and wasteful spending. I will respond to all such complaints in the appropriate forum or at the disciplinary hearing.
Pension fund issues
Mohlala was initially suspended for multiple allegations, including non-compliance with pension fund law.
The second group of investigators, Kettle Consulting, has now found that Mohlala had ordered PPRA’s human resources department to stop deducting pension fund contributions from five employees to boost their salaries.
“It appears the CEO did not read the fund’s rules before issuing this instruction,” Kettle Consulting said.
Investigators found that this resulted in penalties of R160,801 for not paying these contributions.
Kettle Consulting also found that Mohlala inflated the number of Namibian delegates who attended a group of meetings.
“We have established that the total number of people who attended the meetings over the two days was three Namibian delegates and no more than 30 executive and management committee members,” the Kettle Consulting report said.
The regulator’s accountant had refused to sign the settlement for the accommodation of these people because the provider had taken care of 120 people, as indicated on the invoice.
“However, the CEO insisted the invoice was correct with a count of 120 people,” Kettle Consulting said.
Disaster in Denel
This is far from the first instance of mismanagement and corruption significantly affecting public entities.
Public company Denel is auctioning off its motor vehicles to pay the R90 million in unpaid wages to Solidarity member employees.
Despite not paying those salaries for two years, the state-owned company continued to pay the full salaries of executives suspended for alleged corruption.
The first auction took place on Friday July 15 and saw the availability of several passenger and commercial vehicles, as well as office equipment, including:
- 1 x Chevrolet Aveo
- 3 Nissan NP200
- 1 x Toyota Conquest
- 4xToyota Hilux
- 1x Toyota Venture
- 3 Volkswagen polo shirts
- 1 Manitou forklift
- 1 TCM forklift
- 1 LG Plasma TV
- 1 x meeting table + 10 x black leather chairs
- 4 x desk tables + 4 x filing cabinets
- 8 x gray sofas
- 1 x Kevlinator bar fridge
“It’s a sad day. We absolutely did not want to continue the auction processes,” said Derik Mans, Defense and Aerospace Sector Coordinator of Solidarity.
“We were really hoping that the shareholder, and by extension the board of Denel, sorts these things out before it goes up for auction.”