Parliament raises alarm over GPAA’s R145m wasteful spending

Parliament raises alarm over GPAA’s R145m wasteful spending

South Africa’s Government Pensions Administration Agency (GPAA) is under intense scrutiny after Parliament revealed that the agency allegedly incurred R145 million in irregular and wasteful expenditure, part of over R2 billion in questionable transactions flagged in its audited financial statements for the 2024–25 financial year.

The Portfolio Committee on Public Service and Administration described the findings as “extremely serious,” highlighting a disturbing pattern of governance failures and weak accountability within an institution entrusted with safeguarding public servants’ pensions.

Fraudulent office lease raises eyebrows

A large portion of the irregular spending relates to a fraudulent office block that GPAA leased as its head office. The Auditor-General noted that upfront payments and deposits were made to Shula Developers, despite the developer fraudulently letting the property.

Following the discovery, GPAA managed to recover R35.9 million from Shula Developers, but Parliament warned that recovery alone is not sufficient. Committee chairperson Jan de Villiers emphasised that those responsible must face disciplinary and, if necessary, criminal action.

“Accountability cannot be optional, particularly where billions of rand and pensioners’ livelihoods are at stake,” de Villiers said.

The AG has also reportedly calculated about R1 million in interest payable by the service provider by March last year.

Public confidence under threat

The committee expressed concern that payments were made for services not rendered and that procurement protocols were routinely ignored. The Auditor-General also flagged that the GPAA failed to investigate the irregularities or take disciplinary action against officials involved.

“These findings confirm long-standing concerns about governance failures and a culture of weak accountability,” de Villiers said.

The situation has sparked public unease, as the agency is responsible for the pensions of 1.7 million government employees. Citizens and civil servants alike are questioning whether leadership lapses could put their retirement funds at risk.

Leadership shake-up and ongoing investigations

Finance Minister Enoch Godongwana has suspended GPAA CEO Kedibone Madiehe pending an investigation into the irregular expenditure. The committee has pledged to scrutinise future audited financial statements and work closely with the Standing Committee on Finance to ensure corrective measures are implemented.

“Recovery of funds is necessary but not enough. Real remedial action and consequences must follow without delay,” de Villiers said.

In recent months, the committee has repeatedly called for stronger leadership and governance reforms at GPAA to prevent a recurrence of such lapses.

A broader governance concern

This incident underscores wider challenges in public sector governance, including weak oversight, poor procurement practices, and insufficient enforcement of accountability measures. For Parliament, the GPAA case is more than a financial misstepit is a test of South Africa’s ability to protect public funds and maintain trust in state institutions.

With investigations underway, all eyes are now on the GPAA and government officials to ensure that those responsible are held to account, and that pensioners’ funds remain secure.