The suspect mismanagement of funds by the Government Pensions Administration Agency (GPAA), which is largely funded by the Government Employees Pension Fund (GEPF), is strongly condemned.
Any losses suffered by the GPAA translate into financial losses for GEPF members and pensioners.
According to recent media reports, it appears that the GPAA has entered into irregular procurement contracts amounting to R1,2 billion.
The Freedom Front Plus (VF Plus), therefore, demands that the Special Investigating Unit (SIU) or another independent body be appointed to conduct a full forensic investigation.
The party notes that the Minister of Finance, Enoch Godongwana, has suspended the GPAA’s Chief Executive Officer, Kedibone Madiehe, pending an investigation.
The step came after the media reported on the GPAA’s suspicious procurement contracts and the Parliamentary Committee on Public Service and Administration questioned an apparently fictitious R1 billion lease agreement for new GPAA offices.
The suspension of the GPAA’s CEO appears to be a labour-related legal process, while any investigation into possible maladministration should definitely be more comprehensive and independent.
That is why the Freedom Front Plus demands an investigation by the SIU or another independent body.
The GPAA’s suspected mismanagement of GEPF funds comes against the backdrop of losses amounting to billions suffered by the GEPF due to the reckless actions of the Public Investment Corporation (PIC), which holds the mandate and monopoly to invest GEPF funds.
The Mpati Commission, appointed to investigate the PIC’s investments on behalf of the GEPF, made damning findings indicating substantial mismanagement of GEPF members’ pension funds – the PIC acted as if the funds were its personal property or belonged to government.
The PIC also made numerous investments in unlisted black economic empowerment projects, most of which have apparently failed thus far.
The Freedom Front Plus is, therefore, also investigating the possibility of initiating a class action lawsuit on behalf of GEPF members and pensioners against the PIC for all the losses suffered by the GEPF.
Any losses directly attributable to the GPAA will form part of this class action.
The Freedom Front Plus is determined to spare GEPF members and pensioners having to go through the same ordeal as Transnet pensioners.
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