PPRA: Action taken against fraudulent activities by Property Practitioners

PPRA: Action taken against fraudulent activities by Property Practitioners

• 14 October 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Property Practitioners Regulatory Authority (PPRA) has issued a serious warning regarding fraudulent activities involving some property practitioners – stating that they are taking swift action and plan to file criminal charges.

Article:

It has been brought to the attention of the PPRA that some property practitioners are allegedly involved in fraudulent activities which involve, amongst others, the unauthorised use of the electronic signatures of the Executive Manager and the Manager in the Education, Professionalisation & CPD Department in fictitious equivalency exemption letters. Electronic signatures of some employees of the PPRA were also unlawfully used to submit fictitious logbook letters.

The property practitioners involved have unlawfully acquired the electronic signatures of the PPRA personnel mentioned above and created fictitious equivalency exemption letters and logbook letters and thereafter demanded some PPRA personnel to update their records on the PPRA system.

The PPRA views these allegations in a serious light as they do not only constitute gross violation of the Code of Conduct of Property Practitioners but also are of a criminal nature which involves gross dishonesty. This conduct goes against the grain of the values of professionalism, integrity and honesty that are expected of property practitioners.

In the light of the above, the PPRA will be laying criminal charges against the implicated property practitioners with the South African Police Service (SAPS) so that arrests may be made. The PPRA will also institute its own disciplinary process which may lead to the withdrawal of Fidelity Fund Certificates (FFCs) of those found guilty.

Click here to access the notification:

https://theppra.org.za/article/important_communication_on_fraudulent_activities_by_some_property_practitioners

Relevance to Auditors, Independent Reviewers & Accountants:

• The Property Practitioners Act is yet another piece of legislation that your clients (who are pension funds) must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you need to consider your client’s compliance with the new Property Practitioners Act, and be aware of guidance published by the PPRA, such as notices.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for practitioners to keep abreast of any changes in so that they can continue to advise their clients accordingly.

Relevance to Your Clients:

• Property practitioners should be aware of notices and other guidance published by the PPRA.
• Property practitioners should adhere to the PPRA’s Code of Conduct, otherwise they could face disciplinary action.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance business property practitioners to be aware of the latest changes that may affect them, e.g. information provided as guidelines.

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