By Levy Masiteng
The Portfolio Committee on Public Service and Administration has summoned the Government Pensions Administration Agency (GPAA) to appear before it to explain the circumstances surrounding an alleged “ghost contract” worth nearly R1 billion.
The contract in question reportedly involves the lease of a non-existent building for the GPAA’s headquarters for the next 10 years, which the agency allegedly agreed to without proper procurement processes being followed.
The GPAA administers funds for the Government Employees Pension Fund (GEPF), serving 1.7 million employees and pensioners.
According to News24, the agency has already allegedly paid millions to contractors for work on offices it does not have access to, raising the cost of the lease of the Brooklyn Bridge office in Pretoria to over R1.2 billion.
The office is owned by JSE-listed real estate provider Attacq, which said it had not sold or leased the building.
Committee chairperson Jan de Villiers said on Monday that the committee would require full disclosure of all documents and decision-making processes that led to the conclusion of the agreement.
“The allegations are extremely serious. It points to potential financial misconduct and a possible breach of fiduciary duties to pensioners and the public,” he said in a statement.
The committee has welcomed a decision by Finance Minister Enoch Godongwana to launch an investigation into the matter and will closely monitor its progress.
De Villiers emphasised the importance of transparency and accountability.
“Every effort to ensure complete transparency and accountability must be welcomed,” he added.
Additionally, ActionSA has written to Godongwana, demanding answers.
Party leader Athol Trollip said they wanted a full and transparent explanation from the minister within seven calendar days.
“Failure to do so will leave us no choice but to escalate this matter in Parliament and to appropriate oversight bodies,” he said in a statement.
The committee has warned that any GPAA officials involved in the alleged corruption will face disciplinary action, including referrals to law enforcement bodies.
“As a committee, we must ensure accountability and prevent any recurrence,” said De Villiers.
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