The Democratic Alliance (DA) has called for the disbandment of the Government Pensions Administration Agency (GPAA), arguing that its work should be taken over by the Government Employees Pension Fund (GEPF) to protect pensions and taxpayers.
The DA and ActionSA are calling for an urgent parliamentary hearing to hold GPAA executives accountable, with ActionSA formally writing to chairperson of Parliament’s Standing Committee on Public Accounts Songezo Zibi.
Last month, Finance Minister Enoch Godongwana placed GPAA CEO Kedibone Madiehe on precautionary suspension with full pay, effective immediately, following allegations of serious misconduct concerning high-value procurement transactions.
The GPAA was implicated in reports of procurement irregularities, allegedly awarding a R500-million biometric contract to a company without any directors, and for the alleged payment of nearly R36-million to Shula Developers for refurbishments at a non-existent office building.
Shula Developers reportedly returned the funds on the same day Madiehe was suspended, but without interest, with ActionSA MP Alan Beesley saying this raised further concerns about the agency's financial oversight and governance.
DA spokesperson on Finance Dr Mark Burke said the party was outraged that public money was allegedly being used to track down the whistleblower who exposed alleged looting at the GPAA.
Burke said whistleblowers were heroes.
“…they protect taxpayers and expose corruption. Targeting them sends a chilling message: speak up and you will be punished. South Africa cannot afford to repeat the mistakes of the State Capture era where previously reputable firms enabled looting,” he stated.
The DA wants the investigation into the whistleblower halted and the money spent returned to the public, stating that firms should not profit from “witch hunts”, while also working for government.
Meanwhile, Beesley said Parliamentary hearings were vital to ensure transparency, recover lost funds, and prevent further abuse of the GPAA’s administration of the GEPF.
ActionSA has asked that GPAA acting CEO Job Stadi Mngomezulu, the GPAA Advisory Council, Madiehe, and Godongwana along with senior National Treasury officials, be summoned to account for how irregular contracts were signed, what the Minister knew, and why action was delayed until late August.
“Parliament must show that it is serious about protecting government workers’ pensions from corruption and maladministration. We will continue to push for full accountability, so that those responsible for this scandal face consequences and the integrity of public pension funds is restored,” said Beesley.
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