Estate Agency Affairs Board - allegations of maladministration.

A forensic report requested by the board found that Nomonde Mapetla, the dismissed chief executive of the EAAB, benefited herself during her tenure of office, allowing the board’s administration to go to pieces.

These allegations saw her contract being cut short on 28 February 2011. However she still received full payment to July 15, when it would have expired.

Shortly after her dismissal, the EAAB board members launched an investigation into the allegations with the help of Deloitte Risk Advisory.

The findings by Deloitte was released on August 19, these findings showed that Mapetla had violated the EAAB's rules and regulations and also that she demonstrated an absence of transparent leadership. Over the past week Sake24 has inspected this document, however this document is not yet in the public domain.

Industry players believe that the document should be released in due course as this would be in the public's interest. Deloitte's report also makes it very clear that Mapetla did not assist the investigation team during this time. However her refusal to assist the investigation was not the only obstacle that Deloitte had faced. There was the ongoing resistance from the EAAB staff to provide requested documents to the investigating team.

investigatory team was further hampered by a confusion over Mapetla's laptops. The computer handed over to the investigating team was not the one given to her and the they failed to gain access to the second laptop on which she worked until her departure from EAAB.

Deloitte confirmed that no documents or records of her academic and professional qualifications, such as set out in her 2004 contract of employment, could be found.

Mapetla was found to have been guilty of wasteful expenditure and not adhering to the EAAB's travel policy. According to the report, her domestic travelling expenditure of R116 385 and that for international travelling, R205 013, fell outside the guidelines of the board's travel policy.

She was also alleged to have misused a corporate First National Bank credit card in failing to obtain the necessary approval and failing to declare it to the board.She was allegedly not authorised to use EAAB funds to pay for her credit card expenditure. The report refers to "prima facie evidence of fraud" amounting to R88 963 through the use of a credit card.

Mapetla was initially appointed for three years, after which she was paid on a monthly basis for eight months until her contract was renewed for a further three years. Deloitte could find no record that her services had been approved on a monthly basis or that the renewal of her three-year contract had been sanctioned by the board.

The investigating team found that certain allegations against her were unfounded.No proof could be found of either an alleged payment of R400 000 to a staff member, or of a R10 000 payment to her husband. The allegation that she had deliberately inflated the annual statistics of the Fidelity fund certificates was also unfounded.

The report is being released based on the evidence made available and without her response to the allegations and the evidence collected, says the report.

For the past couple of years thousands of estate agents nationwide have had to work without their Fidelity Fund certificates, their "licences" to operate as estate agents in terms of the Agency Affairs Act.
The investigating team was unable to obtain reliable statistics of the number of Fidelity fund certificates issued by the EAAB between 2007 and 2011. But hundreds of certificates that had never been posted to agents were found in a storeroom at the EAAB's Hyde Park head office in Johannesburg.

Deloitte found that the EAAB's legal and compliance division, which was responsible for issuing the certificates, had had to manage without proper guidance from management.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us