Latest news with #GovernmentEmployeesPensionFund
IOL News
02-07-2025
- Business
- IOL News
Government pensions administrator rebuffs allegations of financial mismanagement
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. Image: Sipplied The Government Pensions Administration Agency (GPAA) has responded to recent concerns surrounding a document that has raised eyebrows within the public domain. A week ago, the Public Service and Commercial Union of South Africa (PSCU) raised alarm over alleged financial mismanagement of pension funds amounting to more than R500 million at the GPAA. According to a preliminary internal audit report for the 2024/25 financial year, compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services, there are a number of key governance concerns at the GPAA, which the auditors have brought to the attention of management to ensure sound governance. 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 report found an apparent discrepancy between the reported R15.3 million irregular expenditure and the R30.8m logged in the internal register. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading There was also an innocuous purchase order of R67m, which ballooned into a staggering R495m lease liability, allegedly signed post-audit on 23 May 2025 but backdated to commence on 31 July 2024. The report also raised serious concerns regarding R11.9m in prepayments, an additional R6.8m for undelivered uniforms, and a R12m NPS system devoid of deployment evidence. The PSCU has now demanded evidence of Supply Chain Management compliance and the National Treasury approval over all these allegations, and requests all pertinent contracts, invoices, and approvals regarding multiple contracts, alongside confirmation of any forensic investigations initiated as per the audit recommendations. It wrote a letter to the GPAA CEO, Kedibone Madiehe, a fortnight ago requesting clarification and remedial measures in response to the report. However, the GPAA said no such letter has been received by the GPAA's CEO, or her office. The GPAA told Business Report this week that the document in question was merely a preliminary internal audit report still in progress and was illegally obtained, shared, and published, further complicating the discourse surrounding its contents and validity. GPAA spokesperson, Mack Lewele also said the annual financial statements will be released as part of the Annual Report as soon as they are finalised and approved for publishing. 'It is a preliminary internal audit report that we are working on as per normal audit process (Annual Financial Statement). The document was illegally obtained, shared and published. It is an internal, classified working document that is neither complete nor signed off for distribution,' Lewele said. 'A full picture will emerge when the audit process is complete and signed off and at that point we will be in a position to comment on these matters or answer any question. 'The fact that it was illegally accessed and shared makes it impossible for us to comment on it, particularly the incompleteness thereof. We will invoke the relevant procedures to deal with the illegal distribution of the document.'
Eyewitness News
05-06-2025
- Business
- Eyewitness News
Why innovative financing is critical to closing Africa's infrastructure gap now
Kopano Mohlala 5 June 2025 | 9:53 Acclaimed journalist Crystal Orderson, who specialises in economic and political affairs concerning the African continent, joins 702's Bongani Bingwa to discuss Africa's infrastructure challenges and opportunities. Listen Below: "The infrastructure deficit is massive." Crystal Orderson, Journalist The African Development Bank estimates that the continent needs between $130 billion and $170 billion annually to close this gap. However, Orderson notes that there are pockets of investment in various sectors, including minerals and metals, transport, logistics, water and sanitation, and digital infrastructure, but this is country-specific. 'This is, of course, driven by specific population growth, urbanisation, and energy needs, but those are in specific countries.' - Crystal Orderson, Journalist One promising yet underutilised source of funding is African pension funds. Financing fund managers indicate that these funds hold tremendous potential. In 2020, African pension funds managed approximately $500 billion in assets, with projections suggesting this could grow to R7.5 trillion by 2025. Yet, less than 3% of these assets are allocated to infrastructure. 'There needs to be a confidence vault that these pension funds should invest in infrastructure, because that's where the growth could lie for countries.' - Crystal Orderson, Journalist Much of this capital remains tied up in low-risk government bonds or foreign markets, primarily because of a lack of domestic investment confidence. Nonetheless, there are positive examples. In South Africa, the Government Employees Pension Fund has allocated funds for infrastructure, and in Kenya, the Retirement Benefits Authority has committed nearly 10% of its portfolio to infrastructure development. There are two key investors in major projects across the continent: The African Infrastructure Managers Fund invests in northern, eastern, western, and southern Africa, having garnered assets worth approximately $3.2 billion, with a focus on specific infrastructure projects across the continent. The African Development Bank, which has been investing in Africa's agricultural sector, announced that $ 500 million has been invested in small-scale farmers and agribusiness. Another success story is Ethiopia's thriving coffee sector, which reached $2 billion in exports in just 10 months. 'Over a third of women are actually part of the coffee industry and make up 75% of the labour sector.' - Crystal Orderson, Journalist With support, Ethiopia's government has been able to successfully invest in the country's small-scale farming activities. One of the most compelling examples of successful infrastructure financing is the 480-kilometre railway line connecting Nairobi to Mombasa in Kenya. The Mombasa-Nairobi Standard Gauge Railway was completed in 2017, and the project was financed through a combination of public-private partnerships and international funding sources. Orderson recalls how, in the past, a trip between these two major cities entailed a 12-hour journey along potholed roads and through traffic jams. Today, the railway not only transports over 30,000 passengers daily but also efficiently manages large volumes of cargo through Kenya's ports. 'It's quite interesting because you had funding coming together, and it has been a game-changer. Now you can take a ride in the morning and arrive in Mombasa at the beach during lunchtime.' - Crystal Orderson, Journalist She says Africa has the capital - but what it needs is confidence. "It takes political will - with the private sector and multilateral institutions to come together to make a difference." - Crystal Orderson, Journalist With the right partnerships, creativity, a suitable environment, and innovative thinking, pension funds can be effectively utilised to finance large-scale infrastructure projects. That includes attracting private capital through blended financing structures and public-private, which are crucial to bridging the gap. Catch up on episodes of the RMB Africa Focus that you may have missed here.
