PSCU demands systemic accountability as GPAA CEO disciplinary hearing gets underway

The Public Service and Commercial Union (PSCU) has called for broader accountability at the Government Pensions Administration Agency (GPAA) following the commencement of the disciplinary hearing against suspended CEO, Kedibone Madiehe.

This comes as the National Treasury on Monday announced that the disciplinary hearing into Madiehe's conduct had commenced.

The hearing, which began this week, follows the completion of forensic investigations by three independent firms into allegations of governance irregularities and financial misconduct linked to high-value procurement transactions at the GPAA.

Last year, acting CEO of the GPAA, Job Stadi Mngomezulu, also suspended two senior executives, the acting chief financial officer (CFO) and the acting chief director of client relations management, who are implicated in the allegations. 

The GPAA, which manages the pension affairs of about 1.7 million government employees, pensioners, and their dependants, has been rocked by allegations of large-scale financial mismanagement.

An internal audit prepared by Abacwaningi Business Solutions flagged governance failures and irregular spending estimated at more than R500 million, including questionable contracts worth hundreds of millions of rand.

In June 2025, Business Report published details from the audit, exposing allegations that the GPAA had paid R270m to contractors for refurbishments on a building it had no legal access to under a lease deal valued at R1 billion.

The agency also allegedly squandered R148m leasing mobile office buses and more than R100m on duplicate ICT projects.

Any weaknesses in oversight, procurement or internal controls have far-reaching implications for pensioners and active members across the public service.

Madiehe was placed on precautionary suspension by Finance Minister Enoch Godongwana in August 2025 in terms of the disciplinary framework for senior managers in the public service.

The PSCU on Tuesday said the disciplinary action is the result of sustained pressure by the union after more than a year of raising alarms about failures within the agency.

PSCU secretary general, Tahir Maepa, said the union formally submitted documentary evidence and detailed representations to the Ministry of Finance, the Public Service Commission, and parliamentary oversight structures, calling for decisive intervention and independent forensic investigations.

While welcoming the start of the hearing as a “necessary first step”, Maepa stressed that disciplinary action against Madiehe alone would be insufficient.

"This matter extends beyond one individual. The disciplinary process must expose and address the broader, systemic governance and procurement failures within the GPAA. Any officials, service providers, or third parties implicated through forensic investigations must equally be held accountable," Maepa said.

"Criminal and civil accountability must follow. In this regard, the PSCU formally calls on the Directorate for Priority Crime Investigation (the Hawks) and the Special Investigating Unit (SIU) to finalise, without further delay, all criminal and civil investigations arising from the GPAA reports. Where evidence of criminal conduct exists, arrests, prosecutions, and asset recovery must follow."

Treasury has said that details of the investigative reports and the terms of reference will not be made public at this stage, citing the need to protect the legal integrity of the process and Madiehe's rights.

"The Ministry and the GPAA leadership remain committed to transparency and the restoration of ethical governance. The primary focus of this process is to ensure full accountability and to restore confidence in the governance of the agency," Treasury said.

However, the PSCU insisted that transparency remains non-negotiable, arguing that the outcomes of the hearing must ultimately be disclosed to restore confidence in the GPAA.

The case unfolds against a broader backdrop of heightened focus on governance reform and accountability in public institutions, particularly those responsible for managing large pools of public funds.

In recent years, failures at State-Owned Entities and public agencies have eroded trust and contributed to fiscal pressures, prompting renewed emphasis on consequence management.

For the PSCU, the GPAA process has become a test case for whether South Africa’s governance reform agenda will deliver substantive change or merely symbolic action.

The union said it will monitor the proceedings closely and use all available legal and public accountability mechanisms to ensure the process results in meaningful reform.

“This hearing has commenced because workers and their union refused to be silenced,” the PSCU said, framing the case as a fight to protect the deferred wages of public servants and the integrity of the pension system.

BUSINESS REPORT