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The Portfolio Committee on Public Service and Administration has expressed serious concern after media reports revealed that the Government Pensions Administration Agency (GPAA) incurred irregular and wasteful expenditure totalling R145 million.
 
This expenditure forms part of over R2 billion in irregular transactions recorded in the GPAA’s audited financial statements for the year ended March 2025. The committee 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, Mr 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.” He said these are not isolated irregularities but part of an alarming pattern within an institution entrusted with the administration of public servants’ pensions.
 
According to the News24 report, the Office of the Auditor-General (AG) found that the pensions agency failed to investigate the identified transgressions and did not take any disciplinary action. The Chairperson said this failure to act weakens public confidence. “Accountability cannot be optional,” he said, “particularly where billions of rand and pensioners’ livelihoods are at stake.”
 
Mr de Villiers also noted the partial recovery of R35.9 million from a service provider involved in the irregular lease of the office block and warned that recovering funds after the fact does not absolve those who authorised the irregular expenditure. “Recovery is necessary, but not enough. There must be consequences for maladministration, including disciplinary and, where appropriate, criminal action.”
 
The AG has reportedly estimated the interest payable by the service provider at about R1 million by March last year. In recent months, the committee has repeatedly called for stronger leadership and improved governance at the GPAA. The GPAA’s Chief Executive Officer has since been suspended, and an investigation into the irregularities is underway.
 
“The committee will scrutinise the audited financial statements once they are tabled in Parliament and will work with the Standing Committee on Finance and other structures to ensure that those implicated are held accountable. “We need real remedial actions without delay.”
 
Mr de Villiers reaffirmed the committee’s commitment to overseeing the pensions agency and the Government Employees Pension Fund with its 1.7 million members. “It is important that public servants and pensioners are able to trust that their contributions are managed legally and with integrity. The committee will not relent in its oversight until confidence is restored,” said the Chairperson.

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Public Service and Administration, Jan de Villiers