Government Pensions Agency under fire over R145 million in irregular spending
The Government Pensions Administration Agency (GPAA) is under fire
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The Government Pensions Administration Agency (GPAA) is under fire after audits reportedly revealed R145 million in irregular and wasteful spending, including payments for work that was never done.
The findings, reportedly linked to over R2 billion in irregular transactions, have drawn sharp criticism from the Public Servants Association (PSA) and raised concerns in Parliament about governance failures at the agency, which manages pensions for 1.7 million government employees.
Chairperson of the Portfolio Committee on Public Service and Administration, Jan de Villiers, said the findings are “extremely serious” and signal long-standing governance and accountability issues at the GPAA.
"The committee views these findings as extremely serious," de Villiers said.
“They confirm long-standing concerns raised by the committee in Parliament on issues regarding governance failures, procurement irregularities and a culture of weak accountability.”
De Villiers added that the alleged failure by the GPAA to investigate the irregular transactions or take disciplinary action undermines public confidence.
He 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 PSA said it was "deeply concerned and strongly criticises the latest audit outcome at GPAA".
"The R2 billion in irregular transactions recorded in the audited financial statement is alarming. The payments made for services not rendered and procurement procedures not followed are disturbing. The Auditor-General further found that the agency failed to investigate the identified transgressions, and no consequence management was implemented," PSA said.
PSA also called for the "implementation of stringent control measures and the comprehensive overhaul of governance structures of the agency".
"The continued weaknesses in governance, financial controls, and oversight are contributing to recurring irregularities. Such failures undermine accountability and compromise service delivery, and public confidence in the agency would be eroded quickly."
mthobisi.nozulela@iol.co.za
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