The Congress of South African Trade Unions (COSATU) applauds Finance Minister, Enoch Godongwana, for taking over the affairs of the Government Pensions Administration Agency (GPAA) following reports the agency signed a close to R1 billion, 10-year lease for a building it cannot access.

Minister Godongwana has seconded Deputy Director-general for Corporate Services at National Treasury, Stadi Mngomezulu, to take over operations as acting CEO of GPAA. The GPAA administers funds for the Government Employees Pension Fund (GEPF) for the benefit of 1.7 million workers and pensioners. It’s CEO, Kedibone Madiehe is under investigation after the agency awarded the winning bid to lease its headquarters to a company that does not own or have access to the building. Shockingly, the building belongs to a JSE-listed company that has no intention of selling or evicting its current tenants.

Adding insult to injury, GPAA awarded the same company, Shula Developers, a R239 million contract to refurbish the building and has already paid more than R60 million to Shula and Dikeamo Architects towards the refurbishment.

COSATU previously welcomed Minister Godongwana’s decision to investigate the deal, as we were uneasy about the GPAA’s fast and loose approach to safeguarding workers’ hard earned retirement savings. Mngomezulu is set to act against the top executives of GPAA because it appears they aided the fraudulent transaction.

The Federation commends Treasury and Minister Godongwana on this move. We eagerly await the outcome of the investigation, the prosecution and imprisonment of the wrongdoers. COSATU also calls for the prompt recovery of monies that have already been paid out because we cannot afford to see yet another entity looted without recourse.

Issued by COSATU

Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 or 077 600 6639
Email: zaneles@cosatu.org.za