Dear Editor
The Democratic Alliance (DA) is demanding urgent answers from the Government Pensions Administration Agency (GPAA) over the alleged shocking R1 billion lease agreement with Shula Developers for a building neither owned nor accessible by Shula Developers.
The DA supports the Chairperson of the Portfolio Committee on Public Service and Administration, Jan De Villiers’, decision to summon the GPAA to explain this scandal. We will also use the Promotion of Access to Information Act (PAIA) to obtain all documents linked to the deal so Parliament can hold those responsible to account.
The fact that R62.6 million has already been paid with a further R270 million committed for two contractors to fix up offices Shula Developers has no access or rights to and which is already occupied, is both alarming and unacceptable. This is yet another example of the blatant mismanagement of government funds and the reckless use of employee pension money.
The GPAA is responsible for managing R3 trillion in pension assets for 1.7 million government employees and pensioners. The misuse of these funds is a direct attack on the retirement security of public servants. It is also a theft from the South African economy, which desperately needs these investments to grow businesses and create jobs.
Misuse of public servants’ pension funds is not a new concern. In July 2025, during a parliamentary debate on unpaid pensions, we highlighted the Public Investment Corporation’s (PIC) questionable investments into politically connected entities and encouraged further investigation into these practices. This follows claims that R52 billion in pension savings have been written off in the last 10 years, money which was intended to support economic growth, which was instead plugged into high risk, politically influenced projects that failed to deliver.
Recent investigative reports have exposed further troubling examples. These include a R74.4 million tender awarded to a Kenyan company for houseboats intended for passenger transport in the Democratic Republic of Congo, a project that never materialised, facilitated by Ken Ogwang, a businessman with a track record of questionable tenders via the IDC and PIC.
The DA stands firm in fighting corruption and ensuring that government expenditure is channelled into sustainable, pro-growth initiatives that form part of our plan to turbocharge the economy. The reckless diversion of pension money into risky and suspicious deals cannot be allowed to stand. The DA will ensure that those responsible are held to account and that every cent possible is recovered
Regards
Leah Potgieter MP
DA Deputy Spokesperson on Public Service & Administration