The Minister of Finance, Enoch Godongwana, has appointed a senior National Treasury official to run the Government Pensions Administration Agency (GPAA) after he suspended the Agency’s chief executive following allegations of misconduct related to high-value procurement transactions.
Godongwana placed Kedibone Madiehe on precautionary suspension with full pay on 22 August. Treasury said the disciplinary action was implemented in accordance with President’s Minute No. 191 of 2025 and the Disciplinary Code for Senior Management Services.
Treasury emphasised that Madiehe’s suspension does not constitute a judgment of guilt or innocence. “Rather, it will allow investigations into the matter to be carried out without prejudicing any of the current employees at GPAA.”
On Monday, Godongwana appointed Job Stadi Mngomezulu (pictured), the deputy director-general for corporate services at National Treasury as acting CEO.
The GPAA, established in 2010, is the administrator of the Government Employees Pension Fund (GEPF), which manages about R3 trillion in retirement assets for civil servants and employees of parastatals. The Agency handles administrative functions on behalf of the GEPF through a management agreement, overseeing pensions for about 1.7 million members and pensioners.
As acting CEO, Mngomezulu has the authority to initiate disciplinary actions against at least three other GPAA executives implicated in the matters under review. This includes individuals who played roles in the procurement processes now being scrutinised.
The allegations centre on several procurement contracts flagged for potential irregularities, with reported costs exceeding R1.2 billion.
The primary focus is a lease agreement for the GPAA’s head office at Brooklyn Bridge Office Park in Pretoria, awarded to Shula Developers in October 2024 for nearly R1bn over nine years and 11 months. Shula received an upfront payment of R35.9 million for partitioning, and Dikeamo Architects were paid R26m for office plans. An additional R239m was committed for interior work. However, Attacq, the JSE-listed owner, confirmed no dealings with the GPAA or Shula Developers and stated the property was not available. This has led to descriptions of the deal as a “ghost contract” in media reports.
Other contracts under scrutiny are the Africa Mobility bus lease, valued at R148m for 11 mobile office buses; Jicho Consulting contracts, exceeding R100m for ICT projects; and the LCS Biometric System lease.
A draft audit reportedly identified more than R500m in mismanaged pension funds, including irregular payments and inflated contracts.
Additionally, the GPAA exceeded its R1.4bn operational budget for the year ending March 2025 by R101m without authorisation.
In a related development, a senior financial manager at the GPAA was suspended after refusing to authorise payments exceeding R21m deemed questionable. The manager had previously requested an investigation into contracts dating back to June 2025. Reports indicate this incident reflects a pattern of potential reprisals against those raising concerns about financial practices.
The issues came to light through a series of events beginning in June, when the GPAA’s audit committee requested Godongwana to institute a forensic investigation into procurement contracts potentially involving irregularities and criminal activity. In July, the GEPF also urged the minister to address alleged excesses to protect beneficiaries’ assets.
National Treasury’s Office of the Accountant General has launched a forensic investigation into the allegations and contracts, expected to conclude within 60 days. Parliament’s Portfolio Committee on Public Service and Administration, in collaboration with the Standing Committee on Finance, is also conducting an inquiry.
Godongwana assured pensioners and the public that all services would continue without interruption, with minimal disruption to operations and the maintenance of high governance standards.
