Two forensic investigations by the Property Practitioners Regulatory Authority (PPRA) have found that the corpse spent millions of rand on an app that never worked. reports the city press.
The reports also found that suspended CEO Mamodupi Mohlala had disregarded relevant supply chain management processes when procuring the app.
Lawyers for Malatji & Co found R3.6million was 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 affected employees – including Mohlala – be disciplined.
“From the information provided to us, it appears … that the application is not functional. As a result, RBT’s performance in relation to the agreement is deficient and therefore there is no basis for the PPRA to make any further payments to RBT,” the report reads.
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 bid route.
“However, the PPRA did not follow the unsolicited bidding process as described in Practice Note 11,” stated Malatji & Co Attorneys.
“This is because the proposal did not meet the requirements set out in the practice note, nor did the PPRA follow the assessment process set out therein. On this basis, the PPRA had to reject RBT’s proposal.”
Mohlala has denied these allegations:
“I deny any allegations of procurement irregularities resulting in irregular and/or fruitless and wasteful spending. I will respond to any such allegations in the appropriate forum or at the disciplinary hearing.”
pension fund problems
Mohlala was initially suspended for several allegations, including non-compliance with the Pension Fund Act.
The second group of investigators, Kettle Consulting, has now found that Mohlala had ordered the PPRA’s human resources department to stop deducting five employees’ pension contributions in order to supplement their salaries.
“It appears that the CEO did not read the fund’s rules before issuing this directive,” Kettle Consulting said.
Investigators determined that this resulted in R160,801 in penalties for non-payment of these contributions.
Kettle Consulting also found that Mohlala inflated the number of Namibian delegates who attended a group of meetings.
“We found that the total number of people attending the meetings over the two days was three Namibian delegates and no more than 30 board and management committee members,” the Kettle Consulting report said.
The regulator’s accountant had refused to sign off on the payment for the accommodation of these people because, as stated in the invoice, the service provider had provided for 120 people.
“However, the CEO insisted that the calculation was correct at a number of 120 people,” said Kettle Consulting.
Disaster at Denel
This is by far not the first case of mismanagement and corruption that has seriously affected public institutions.
State company Denel is in the process of having its motor vehicles auctioned off to pay the outstanding wages of R90 million to staff who are members of Solidarity.
Although the state-owned company did not pay these salaries for two years, it continued to pay the full salaries of executives suspended on allegations of corruption.
The first auction took place on Friday 15th July and saw several passenger and commercial vehicles and office equipment made available including:
- 1*Chevrolet Aveo
- 3 x Nissan NP200
- 1 x Toyota Conquest
- 4 x Toyota Hilux
- 1 x Toyota Venture
- 3 x Volkswagen Polos
- 1 x Manitou Forklift
- 1 x TCM Forklift
- 1 x LG Plasma TV
- 1 x meeting table + 10 x black leather chairs
- 4 x office tables + 4 x filing cabinets
- 8 x gray sofas
- 1 * Kevlinator Fridge
“It’s a sad day. We definitely didn’t want to continue any auction procedures,” said Derik Mans, Solidarity’s defense and aerospace sector coordinator.
“We really hoped that the shareholder and thus also the Denel board would settle these points before an auction took place.”