Effective from 03 September 2018, the suspensions follow allegations of gross negligence, dishonesty and dereliction of duty regarding an R80 million investment in VBS Bank and failure to provide relevant information to the Board relating to the investment of surplus funds.

The suspension is on condition of full pay and subject to pending investigations and a possible disciplinary enquiry.

Disappointing

Andrew Shaefer, MD of Trafalgar Property Management, which manages 1300 sectional title complexes and HOAs around the country, said: “This is so very disappointing considering this is a new regulator still building credibility with an ongoing backlog of basic registration processed.

“We are being increasingly approached by buildings enquiring whether they can withhold CSOS levies or pay these into attorney Trust accounts until there is a definitive outcome to the disciplinary process. We are advising clients to continue to pay levies on the expectation that CSOS will swiftly conclude internal disciplinary and remedial processes.”

However, Yolanda Venter, of Centurion-based JM Venter Property Services, believes that the suspensions should not have any negative impact on the operations of the CSOS.

“We trust that the CSOS has the necessary expertise to fulfil its obligations until the matters have been resolved,” she said.

The new incumbents were announced as Ms Ndivhuo Rabuli, the current Executive for Legal, Compliance and Enforcement, as Acting Chief Ombud and Mr Nathi Dube, the current Finance Manager, as Acting Chief Financial Officer.

“Bravely ethical board members”

It is understood that the CSOS board was sharply divided over the decision to suspend Letele and Mabuya and it was only after considerable pressure from the Minister of Human Settlements and a legal opinion from a Senior Advocate that the suspension decision was taken.

In his September newsletter to sectional title owners, Tertius Maree of Tertius Maree Associates, who was instrumental in the creation of the CSOS, commended “the bravely ethical persons” such as Marina Constas who worked together with a few board members to ensure that corruption is not an option for CSOS.

Business as usual

Constas confirmed that despite the recent turmoil, it is ‘business as usual’ for the organisation: “The mandate for CSOS is to be a world class organisation. We have to strive to protect this organisation, and to improve its operations.”

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