GPAA Shake-Up: CEO Suspended, Political Pressure Mounts, and Next Steps Outlined

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The Government Pensions Administration Agency (GPAA) has been plunged into controversy after its CEO was suspended with full pay on 22 August 2025. Finance Minister Enoch Godongwana said the suspension is precautionary, allowing for a forensic probe into alleged misconduct linked to multi-million rand procurement contracts.

The scandal deepened after the finance manager of GPAA was allegedly suspended for blocking a questionable R21 million payment. Critics say the Minister has been aware of the issue for months instead of protecting pension funds. And this is not an isolated case, as earlier in August it emerged that GPAA signed a R1 billion lease with a company that doesn’t even own the building.

Political Pressure

While the Treasury insists on following ‘due process’ of suspension with full pay, the Democratic Alliance (DA) has demanded the CEO’s immediate dismissal, arguing that suspension with pay is far too lenient given the seriousness of the allegations. The DA is also pressing government for a clear accountability roadmap once the investigation concludes.

What Happens Next

The National Treasury issued a Media Statement on the change of leadership of the GPAA and confirming that the Office of the Accountant General has already begun a forensic investigation into four contracts:

• GPAA Head Office Lease

• African Mobility Bus Lease

• Jicho Consulting Contracts

• LCS Biometric System Lease

Minister Godongwana has promised the inquiry will be concluded within 60 days, with pension services continuing uninterrupted during the process.

CIBA’s Response

The Chartered Institute for Business Accountants (CIBA) issued a statement linking the GPAA scandal to wider governance failures. CIBA is calling for a NOCLAR Protection Fund to safeguard accountants who act ethically, warning that professionals who refuse to approve suspicious transactions are too often punished instead of protected.

👉 Read the full press release on CIBA’s site.