Godongwana expects full operations to continue at GPAA after CEO placed on precautionary suspension

JOHANNESBURG - Minister of Finance Enoch Godongwana says he expects full operations to continue at the Government Pensions Administration Agency (GPAA) after placing its CEO on precautionary suspension.

Godongwana’s decision to suspend Kedibone Madiehe, with full pay, comes amid serious allegations of procurement irregularities at the agency.

This includes claims she is aware of a fictitious lease agreement entered into by the pensions administrator and a property developer, costing more than R1 billion.

The concerns about maladministration at the GPAA were reportedly brought to Treasury’s attention in June, with the agency’s audit committee demanding a forensic probe into the matter.

Godongwana has now seconded and appointed Treasury’s Job Mngomezulu as acting CEO.

Godongwana said Madiehe’s precautionary suspension "does not in any way constitute a judgment of guilt or innocence".

He said, instead, "it will allow investigations into the matter to be carried out without prejudicing any of the current employees at GPAA".

Godongwana has assured pensioners that all pension services will continue without interruption, the investigation will be conducted promptly and thoroughly, there will be minimal disruption to GPAA' critical operations, and that the highest standards of governance will be maintained.

The GPAA administers pensions on behalf of the Government Employees Pension Fund, managing benefits for more than 1.8 million public servants and pensioners.