The GPAA’s CEO Kedibone Madiehe has since been suspended by Finance Minister Enoch Godongwana. Picture: X/@slavesub4u The expenditure forms part of over R2 billion in irregular transactions recorded in the GPAA’s audited financial statements for the year ended March 2025, which were submitted to Parliament late in December. It includes irregular expenditure on a fraudulent office block for the agency’s head office.
The Auditor-General of South Africa (AGSA) said the agency had failed to investigate the transgressions and had not implemented any disciplinary processes against those responsible. The Auditor-General recorded that after year-end, the GPAA recovered at least R35.9 million from Shula Developers, which had received the funds as an upfront payment and deposit in a R239 million refurbishment deal for an office block it had fraudulently let to the GPAA in 2024. Parliament’s committee said it is concerned that some payments were made for services not rendered and that procurement procedures were not followed, including costs associated with leasing an office block intended as the agency’s head office.
“The committee views these findings as extremely serious,” said the chairperson of the committee, Jan de Villiers. “They confirm long-standing concerns raised by the committee in Parliament on issues regarding governance failures, procurement irregularities and a culture of weak accountability.” According to reports, the AG found that the pensions agency failed to investigate the identified transgressions and did not take any disciplinary action.
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