By Buchule Putini
ActionSA has fired off a strongly worded letter to Finance Minister Enoch Godongwana, demanding urgent answers over explosive claims that the Government Pensions Administration Agency (GPAA) splurged hundreds of millions on a building it reportedly has no legal access to.
The outcry follows a News24 exposé titled “Ghost contract: No building, but govt pensions agency paid R270 million for lavish refurb”, which laid bare allegations that the GPAA — custodian of the Government Employees Pension Fund — paid more than R60 million to contractors for refurbishment work linked to a lease agreement that may be invalid or entirely fictitious.
“These alleged transactions raise serious questions about governance, accountability, and oversight within the GPAA,” said ActionSA Parliamentary Leader Athol Trollip. “This is a body entrusted with safeguarding the pension savings of thousands of public servants — they deserve far better.”
In its letter, ActionSA wants Minister Godongwana to urgently confirm:
Whether the payments complied with the Public Finance Management Act and whether his office was aware or approved them;
If the spending was reported to National Treasury and compliance units;
What steps are being taken to recover any misused funds, investigate the saga, and tighten controls.
“Government employees deserve confidence that their retirement savings are managed with the utmost integrity and prudence. Allegations of irregular and unauthorised spending erode this trust and cannot be ignored,” Trollip said.
The party has given Godongwana seven days to respond, warning that failure to do so will see the matter escalated in Parliament and to oversight bodies.
“We owe it to South Africans and the hardworking public servants who contribute to this fund to ensure their money is protected — not wasted through possible corruption or gross mismanagement,” Trollip added.
