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The Portfolio Committee on Public Service and Administration today welcomed the leadership changes at the Government Pensions Administration Agency (GPAA) announced by National Treasury. This follows allegations of procurement irregularities reportedly amounting to approximately R1.2 billion.
The Minister of Finance announced the decision to place the GPAA Chief Executive Officer on precautionary suspension. At the same time, a forensic investigation is underway to allow investigations into the matter to be carried out without prejudicing any of the current employees at GPAA. Mr Job Stadi Mngomezulu, Deputy Director-General: Corporate Services at National Treasury, has been appointed as Acting Chief Executive Officer.
Noting the decision, the committee expressed support for the actions and for the National Treasury’s stated commitment to restore stability at the agency, strengthen governance and ensure accountability in managing the pension funds of more than 1.7 million public servants and pensioners.
The Chairperson of the committee, Mr Jan de Villiers, welcomed the latest developments and also commended the president’s action in endorsing this intervention. “This sends a clear message that maladministration and corruption in state entities will not be tolerated. We expect this investigation to lead not only to corrective action but also to set an example of consequence management in practice.” He said pensioners and government employees must have confidence that their savings and benefits are protected by sound governance and free from interference. “The committee also urges the newly appointed Acting Chief Executive Officer to act swiftly by instituting disciplinary proceedings against all executives implicated.”
The Chairperson stressed that this matter must not only be investigated internally but also referred for criminal prosecution where necessary, so that there are consequences for those responsible for endangering billions of rand in state pensions and resources. Given allegations of collusion and manipulation of procurement processes by senior management of the GPAA, the Chairperson said the role of private contractors must also be thoroughly investigated. “Such collusion undermines the integrity of public institutions and erodes public trust.”
The committee reaffirmed its commitment to rigorous oversight of the GPAA and other public entities. It will monitor the investigation closely to ensure that good governance, transparency, accountability and consequence management prevail across the public service.
Issued by the Parliamentary communication Services on behalf of the chairperson of the Portfolio Committee on Public Service and Administration, Jan de Villiers
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