GPAA CEO Suspended Over R1.2bn Procurement Probe, Treasury Appoints Acting Head

According to media reports, Madiehe faces allegations linked to irregularities in several high-value procurement transactions.

The Chief Executive Officer of the Government Pensions Administration Agency (GPAA), Kedibone Madiehe, has been placed on precautionary suspension with full pay amid a high-stakes investigation into alleged procurement breaches amounting to more than R1.2 billion. The decision was announced on Friday, 22 August 2025, by the Minister of Finance, Enoch Godongwana, who invoked delegated powers under President’s Minute No. 191 of 2025 and the Disciplinary Code for Senior Management Services.

Allegations and Scope of the Investigation

According to media reports, Madiehe faces allegations linked to irregularities in several high-value procurement transactions. Contracts under scrutiny include the GPAA Head Office Lease, African Mobility Bus Lease, Jicho Consulting Contracts, and the LCS Biometric System Lease. These contracts collectively represent substantial financial commitments that investigators suspect were marred by misconduct, maladministration, or breaches of established procurement regulations.

The National Treasury has confirmed that its Office of the Accountant General (OAG) has already launched a detailed forensic investigation. The probe will target both the implicated individuals and the contractual processes that led to the alleged financial exposure. Officials have indicated that the preliminary phase will involve a deep review of the procurement chain, examining compliance with Treasury regulations, conflict-of-interest safeguards, and the adequacy of oversight mechanisms.

Appointment of Acting CEO

To ensure continuity of operations and safeguard public confidence, the Finance Minister announced the secondment of Job Stadi Mngomezulu, the Deputy Director-General for Corporate Services at the National Treasury, to act as CEO of GPAA. His appointment took effect on 25 August 2025.

Mngomezulu brings over two decades of Treasury experience, having served in multiple senior roles including Director: Financial Management, Chief Financial Officer, and Chief Risk Officer. He holds a Bachelor of Commerce in Accounting, a Master’s in Business Leadership (MBL) from UNISA, completed the National Treasury Chief Directors Programme at the Gordon Institute of Business Science (GIBS), and obtained certification in Board Effectiveness for Pension Funds from the International Centre for Pension Management at the Rotman School of Management, University of Toronto.

Treasury insiders suggest his appointment is aimed at reassuring both employees and pensioners that the agency’s operations will remain stable and transparent during this sensitive period.

Assurance to Pensioners

Minister Godongwana stressed that precautionary suspension does not imply guilt, but is a procedural safeguard to allow the investigation to proceed unhindered. He assured the public that pension services will not be disrupted and that GPAA’s critical functions will continue seamlessly.

“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.

The Minister further emphasized that disciplinary proceedings will be conducted within proper legal frameworks, with due respect to the rights of all parties involved. Treasury is targeting a 60-day timeframe to conclude the investigation and institute any further disciplinary measures if necessary.

Governance and Public Confidence

This development comes at a time when public confidence in state institutions is under close scrutiny. Treasury officials have reiterated their commitment to upholding the highest governance standards within the GPAA, a critical institution tasked with managing and administering pensions for thousands of public servants and retirees.

Minister Godongwana added:

“We deeply appreciate the importance of maintaining the trust and confidence of pension holders and broader society in GPAA’s operations. The National Treasury remains committed to transparent governance and will provide updates as appropriate while respecting the integrity of the ongoing processes.”

Broader Implications

The investigation into procurement irregularities at GPAA adds to growing concerns about governance in state entities responsible for large financial transactions. Analysts note that should the allegations be substantiated, the case may prompt stronger oversight mechanisms for pension-related procurement, including tighter compliance monitoring and mandatory transparency requirements for high-value contracts.

While GPAA continues to serve pensioners without interruption, the outcome of this probe could set a precedent for how disciplinary actions and investigations into procurement mismanagement are handled in public sector agencies going forward.