Union raises alarm over severe mismanagement of pension funds

Public service union issues warning regarding more than R500 million at GPAA

- SIPHELELE DLUDLA

THE Public Service and Commercial Union of South Africa (PSCU) has issued a stark warning regarding the alleged financial mismanagement of pension funds amounting to more than R500 million at the Government Pensions Administration Agency (GPAA).

In a letter to the GPAA CEO Kedibone Madiehe over the weekend, the PSCU requested clarification and remedial measures in response to the troubling findings of the pension administrator’s Internal Audit Report for the 2024/25 financial year.

The GPAA is a government component which reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF), the largest pension fund in Africa.

It thus administers the pension affairs of approximately 1.7 million government employees and pensioners, as well as the affairs of their spouses and dependants.

The internal audit report was compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services and found a raft of key governance concerns, which they brought to the attention of management to ensure sound governance.

According to the PSCU secretary general, Tahir Maepa, this report not only highlights gross financial mismanagement but also hints at potential criminal conduct that necessitates urgent strategic intervention.

"The report reveals severe financial mismanagement, governance failures, and potential criminal conduct that demand urgent intervention," said Maepa in the letter.