GPAA summoned by Parliament to explain controversial rental agreement

Parliament is set to call on the Government Pension Administration Agency (GPAA) to answer pressing questions regarding the refurbishment of a building for a multimillion-rand office rental agreement.

The committee’s planned action takes place as ActionSA has formally written to Finance Minister Enoch Godongwana, expressing serious concern over the refurbishment of the building and the office lease agreement entered into by PGAA.

The GPAA, which administers funds and schemes for the Government Employees Pension Fund, reportedly paid R270 million to contractors for refurbishing a building linked to a 10-year office lease agreement estimated at R1 billion.

Jan de Villiers, chairperson of the Portfolio Committee on Public Service and Administration, said they were concerned over reports alleging several irregularities in an agreement of the GPAA to lease a building for its headquarters for the next 10 years.

De Villiers said that the contract showed a potential abuse of public funds.

He stated that the committee would summon the GPAA to appear before it and provide details regarding the circumstances surrounding the contract.

“The committee will require full disclosure of all documentation and decision-making processes that led to the conclusion of the agreement,” said De Villiers.

The committee welcomed Godongwana’s decision to launch an investigation into the contract and that they will closely monitor its progress.

De Villiers said every effort to ensure complete transparency and accountability should be welcomed.

“The allegations are extremely serious. It points to potential financial misconduct and a possible breach of fiduciary duties to pensioners and the public. As a committee, we must ensure accountability and prevent any recurrence.”

De Villiers said should any fraud or criminal conduct be uncovered, appropriate remedial action, including referrals to law enforcement bodies, should be taken.

ActionSA parliamentary leader Athol Trollip said the contracts raised serious questions about governance, accountability, and oversight within the body entrusted with safeguarding the pension savings of thousands of public servants.

“Government employees deserve confidence that their retirement savings are managed with the utmost integrity and prudence. Allegations of irregular and unauthorised spending erode this trust and cannot be ignored,” he said.

Trollip also said ActionSA has given Godongwana seven calendar days to provide a full and transparent explanation on the matter.

“Failure to do so will leave us no choice but to escalate this matter in Parliament and to appropriate oversight bodies,” he said.

Meanwhile, the GPAA said the report on which the media report was based came when the matter was a subject of an audit process that was under way.

“We reiterate that our process to procure the services mentioned was fair, transparent, and competitive.”

The agency said it was committed to the investigation process and would not pre-empt its outcomes.

It dismissed the R1 billion costs for rental and stated that there was no signed offer to purchase agreement between the builder and the owner of the building.

“The GPAA awarded the bidder based on their satisfying the requirement to either own a building or have a signed offer to purchase agreement… We still appeal for all stakeholders to allow the process to complete, and stated before, we will follow appropriate action if the results point to any maladministration.”

mayibongwe.maqhina@inl.co.za