By Thebe Mabanga
Finance Minister Enoch Gondongwana has placed the CEO of the Government Pension Administration Agency (GPAA), Kedibone Madiehe, on precautionary suspension with full pay pending investigation into procurement irregularities.
“The disciplinary action was implemented in accordance with President’s Minute No 191 of 2025 and the applicable Disciplinary Code for Senior Management Services, which delegated authority to the Minister of Finance to institute disciplinary processes concerning these allegations. This includes precautionary suspension, as well as any subsequent steps.” the National Treasury said on Monday.
Godongwana has been under pressure to act against Madiehe, following a series of revelations of tender irregularities, with the Democratic Alliance calling for her outright dismissal.
The DA will use its position as chairperson of the Public Service and Administration Portfolio Committee to call the PGAA to account together with the Public Investment Commissioners (PIC), which invests government employee pensions and other funds.
It was recently revealed that the GPAA allegedly signed a R1 billion building lease with a company that did not own the building in question.
The agency allegedly paid a further R241 million for refurbishments on the building it had no access to.
In its statement, the DA cites an instance where a manager was suspended for refusing to sign a R21 million questionable contract.
Treasury has now announced that it has, through the Office of the Accountant General (OAG) unit, “commenced a detailed forensic investigation into all allegations against implicated individuals as well as contracts that have been awarded”.
The preliminary focus of the investigation will be on the GPAA head office lease, African Mobility bus lease, Jicho Consulting contracts and LCS Biometric system lease.
“It is important to note that precautionary suspension does not in any way constitute a judgment of guilt or innocence. Rather, it will allow investigations into the matter to be carried out without prejudicing any of the current employees at GPAA,” Treasury said in a statement.
It also announced that Job Stadi Mngomezulu, who is the deputy director-general for corporate services at National Treasury, has been seconded to the GPAA as the acting CEO.
Mngomezulu is a 20-year veteran of the National Treasury.
Godongwana expressed confidence in Mngomezulu’s leadership.
“Under Mr Mngomezulu’s leadership, GPAA will continue to deliver on its mandate while we work to resolve these matters expeditiously.”
Godongwana also stressed that all pension services would continue without interruption and that the investigation would be conducted promptly and thoroughly.
It will conclude in 60 days.
The minister also noted that there would be minimal disruption to GPAA’s critical operations and that the highest standards of governance would be maintained.
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