Fidelity Fund Breach: Questions mount over ADDPROP’s legal standing in South Africa’s property market

Questions rise asking ADDPROP’s legal standing. (Witness Mdaka/via X)

By Mathipa Phishego

Allegations have surfaced that ADDPROP Property Management Systems, led by founder and CEO Witness Mdaka, has been operating outside the legal framework that governs South Africa’s property industry. An affidavit dated 1 September 2025 reportedly confirms that ADDPROP is not registered with the Property Practitioners Regulatory Authority (PPRA) and does not hold a Fidelity Fund Certificate (FFC), a mandatory requirement under the Property Practitioners Act No. 22 of 2019.

The Property Practitioners Act (PPA) makes it clear: no person or entity may operate as a property practitioner without a valid FFC. Section 48(3) specifically states that any operations conducted without an FFC are unlawful and constitute an offense. The absence of such certification not only places ADDPROP in breach of the law but also strips consumers of the protective measures offered by the Fidelity Fund in cases of fraud, mismanagement, or financial impropriety.

Despite the alleged non-compliance, Mdaka has maintained a high public profile for ADDPROP, particularly on platforms such as TikTok, where he promotes the company as a transformative force in property management and investment. He has frequently positioned ADDPROP as a platform that empowers individuals to participate in the property sector and has boasted of significant listings. However, the affidavit’s contents, coupled with ongoing discussions on social media questioning ADDPROP’s compliance, appear to challenge this narrative.

Mdaka has previously dismissed such criticisms, suggesting that detractors misunderstand the PPRA’s requirements. Yet the affidavit’s confirmation of the absence of an FFC directly contradicts these claims. If ADDPROP has indeed been operating without the required PPRA registration and Fidelity Fund Certificate, it raises urgent questions for:

• Clients who may have unknowingly engaged in transactions without the legal safeguards provided by the Fidelity Fund.
• The industry, which relies on regulatory compliance to maintain credibility and consumer trust.
• Regulators, who face mounting pressure to ensure that entities like ADDPROP do not operate unlawfully.

The case underscores the importance of due diligence by consumers, who are encouraged by the PPRA to always verify whether a property practitioner holds a valid FFC before entering into any agreement. At the time of writing, no public response from the PPRA has been issued regarding ADDPROP’s regulatory status, and Mdaka has not provided an official statement addressing the affidavit.

As it stands the story is developing as the allegations goes further to other property listing companies.