The Congress of South African Trade Unions is extremely concerned at the illegal and unprocedural dismissal of Nomonde Mapetla, as Chief Executive of the Estate Agency Affairs Board (EAAB), the regulator of the country's 27 000 estate agents, a position she has held since November 2004.
She was "placed on special leave" on 17 February 2011, allegedly "to afford the Board the opportunity to undertake an investigation into possible operational and governance irregularities that might have occurred in the EAAB." Then on 28 February 2011 the board served her with a dismissal letter terminating her employment contract "due to an irreconcilable breakdown in the working relationship between the parties". She was not given a hearing or even a charge sheet.
She will appear before the High Court on Thursday 10 March to seek a ruling that her dismissal was unlawful and unfair, on the grounds that the EAAB had given no reason for its decision.
She insists that the reason could not possibly be incompetence, given that her performance assessments at the EAAB over the years have generally averaged 80% to 90%, and that she turned a R7.4m deficit into a R27m profit. Whereas previously there had been qualified audits, since her appointment the EAAB has received clean audits for six successive financial years.
Mapetla's dismissal follows the prosecution of estate agent Wendy Machanik and her company's chief financial officer, Bruce Bernstein, on three charges of contravening the Estate Agency Affairs Act and 116 charges of conspiracy to commit fraud involving R25.2 million. This followed a probe by the after a whistle-blower's tip-off to the EAAB.
Machanik and Bernstein have been granted bail of R25 000 and R5 000 respectively and both have had to surrender their passports.
There have been rumours that Mapetla's axing might be linked to this case and investigations into corruption at other top companies. Trade and industry minister Rob Davies has confirmed in Parliament that three more estate agencies - Seeff Properties, Wakefields Properties and Sunset Trading CC - are being probed by the EAAB allegedly for unauthorised use of funds in trust accounts.
Mapetla was reported to be living in fear of her life after being followed by strangers in unmarked cars. One report said that even her dog was brutally attacked and its ears mutilated! She was given 24-hour security protection after these incidents.
The estate agency sector is a multi-billion rand business with a major role in controlling the housing market. Its turnover, according to one estimate, is a massive 12% of the GDP. And it is one of the least transformed sectors of the economy. 96% of the business is owned by whites, with only 4%, worth less than R500 million, shared between blacks (African, Indians and coloureds).
The EAAB Board is dominated by these white owners, together with the banks and their lackeys. This is in line with the old apartheid era legislation that was passed in the darkest days of our country in 1976. COSATU calls on the Minister to initiate changes to the legislation and to ensure a new board that is not dominated by people with only an interest of making money instead of people who seek to transform apartheid spatial development and build non-racial communities.
It cannot be a coincidence that Nomonde Mapetla's summary dismissal followed the charging of Wendy Machanik and the investigation into three other companies. Her sacking is not just a labour rights issue. It raises fundamental human rights concerns around the fight against crime and corruption.
As COSATU has always said, corruption has never just been a problem within the public service but has its roots in private business, like the estate agency business. Mapetla was shaking the tree of corruption and crime and deserves the support of all South Africans.
It will be a tragedy and a travesty of justice if Mapetla was to be dismissed without a hearing and in the circumstances outlined in the statement. COSATU will give support to her and all those victimised by the bullies who are hell-bent on covering their tracks. In this regard should the matter go further than tomorrow, COSATU will file an application to be a friend of the court and will take the matter to the highest court of the land.
The lack of transformation in the industry is also a major concern. If government is serious about BBBEE and affirmative action, then surely this industry has to be a priority. COSATU also appeals to the black workers in the industry to stand up and fight for their rights to their constitutional right to a far bigger stake in the business.
Statement issued by Patrick Craven, COSATU national spokesperson, March 7 2011
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