COMMUNAL PROPERTY ASSOCIATIONS

PART 5
5. CHALLENGES ENCOUNTERED
The following challenges were encountered during the year
2014/15 in implementation of the Communal Property
Association Act:
5.1. Infightings
Where there is infighting by factions within a CPA, it becomes
difficult for a CPA to operate optimally. This also affects CPAs’
ability to comply. In this instance the Department always has
to shift the focus from compliance monitoring to dispute
resolution.
5.4. Intra-CPA litigation
In situations where members of the CPA have taken each
other to court, it becomes difficult to probe certain
information as some of the matters might still be argued
before court. This sometimes makes it impossible for the
Department to assist in the out of court resolution of
disputes.
5.2. Financial management
Some CPAs have more than one bank account. Additional
bank accounts are often not known to the members. When
the financial position of a CPA is assessed, both for auditing
and for determining the value of the business, multiple
accounts are used to misrepresent the financial position to
the members and third parties. Complaints about finances are
the main cause of disputes within CPAs.
.
5.3. Interdicts
The Department is sometimes interdicted from intervening in
the affairs of the CPA. This results in long legal battles. This
delays the implementation of dispute resolution to the
detriment of members.
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