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Government pensions administrator rebuffs allegations of financial mismanagement

Details

southafricalogoIOL Business reports that the Government Pensions Administration Agency (GPAA) has responded to key governance concerns raised in a preliminary internal audit report for the 2024/25 financial year.

The GPAA is a government entity which reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF). It thus administers the pension affairs of approximately 1.7 million government employees and pensioners. The report by Abacwaningi Business Solution (ABS) found an apparent discrepancy between the reported R15.3 million irregular expenditure and the R30.8m logged in the internal register. There was also an innocuous purchase order of R67m, which ballooned into a staggering R495m lease liability, allegedly signed post-audit on 23 May 2025 but backdated to commence on 31 July 2024. The report moreover raised serious concerns regarding R11.9m in prepayments, an additional R6.8m for undelivered uniforms, and a R12m NPS system devoid of deployment evidence. The Public Service and Commercial Union of SA (PSCU) has demanded evidence of Supply Chain Management compliance and the National Treasury approval in respect of all these allegations. However, according to the GPAA, the document in question was merely a preliminary internal audit report still in progress and was illegally obtained, shared, and published, further complicating the discourse surrounding its contents and validity. “A full picture will emerge when the audit process is complete and signed off and at that point we will be in a position to comment on these matters or answer any question,” the GPAA advised. Meantime, the GPAA has issued the PSCU with a cease and desist letter from its lawyers and a demand that the union publish an unconditional retraction and an apology.

  • Read the full original of the report in the above regard by Siphelele Dludla at IOL Business


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