Latest news with #GPAA
IOL News
7 days ago
- Business
- IOL News
GEPF concerned about mismanagement allegations at GPAA amid tech challenges
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: Supplied The Government Employees Pension Fund (GEPF) has has sounded the alarm on potential reputational risks stemming from serious allegations of maladministration and financial mismanagement at the Government Pensions Administration Agency (GPAA). The GPAA is a government component which reports to the Minister of Finance and administers funds and schemes on behalf of the 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 GPAA has been rocked by allegations of serious financial mismanagement of pension funds amounting to more than R500 million after an audit being prepared for the financial year end flagged administration issues. An internal audit report compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services found a raft of key governance concerns, which they brought to the attention of management to ensure sound governance. The Public Service and Commercial Union of South Africa (PSCU) then accused the GPAA CEO, Kedibone Madiehe, and other supply chain executives of maladministration and financial misconduct related to the award of contracts, an inflated purchase order for lease and prepayment for undelivered uniforms. Speaking during a media roundtable on Thursday, GEPF principal executive officer, Musa Mabesa, said they were aware of the allegations of mismanagement indicated by the PSCU. However, Mabesa said the GPAA reported to the National Treasury though it has a service level agreement with the GEPF and the GEPF funding the lion's share of its budget. 'The allegations that have been leveled against the GPAA, we have flagged those and have also indicated to National Treasury and the ministry to look into those as our relationship is fairly contractual. But they remain a concern to the Fund as that does not paint a good picture, especially in the midst of the challenges with the delays in payment of benefits,' Mabesa said. 'So we will watch the developments around those allegations closely and ensure that the GEPF's reputation remains intact at all times.' Mabesa also pointed to serious technological challenges at the GPAA, saying the organisation was working on outdated systems. 'I mentioned that they are using a legacy pension administration system which works off old technology. So it's very difficult for that system to be enhanced to allow full automation of the claims onboarding and exit processes, 'he said. 'So our modernization project, which they are implementing under the guidance of the GEPF board, is to ensure that we get a new system but also complementary processes that will enhance the administration capability for a better experience for our members and pensioners. 'So that is an ongoing process. We acknowledge that system that we're using. I forgot the IT terminology for the technology that this current system is using but there's a lot of manual intervention in that process as well. So the enhancement of this process is to ensure that we can have a seamless onboarding and exit process.' As of March 2024, the GEPF had just more than 1.27 million active members and above 520 000 pensioners, beneficiaries, as well as spouses of deceased members or pensioners. During the same period, the GEPF had paid more than R140 billion to its members and beneficiaries, and collected around R92bn in contributions from its active members. The GEPF's assets have grown from R127bn in 1996 when the fund was formed to an unaudited sum of R2.38 trillion as of March 2024. BUSINESS REPORT
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.'
IOL News
23-06-2025
- Business
- IOL News
Public sector union raises alarm over severe financial mismanagement of pension funds
the GPAA administers the pension affairs of approximately 1.7 million government employees and pensioners, as well as the affairs of their spouses and dependants. Image: File Photo The Public Service and Commercial Union of South Africa (PSCU) has issued a stark warning regarding the alleged financial mismanagement of pension funds amounting to more than R500 million at the Government Pensions Administration Agency (GPAA). In a letter to the GPAA CEO Kedibone Madiehe over the weekend, the PSCU requested clarification and remedial measures in response to the troubling findings of the pension administrator's Internal Audit Report for the 2024/25 financial year. 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 internal audit report was compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services and found a raft of key governance concerns, which they brought to the attention of management to ensure sound governance. According to the PSCU secretary general, Tahir Maepa, this report not only highlights gross financial mismanagement but also hints at potential criminal conduct that necessitates urgent strategic intervention. 'The report reveals severe financial mismanagement, governance failures, and potential criminal conduct that demand urgent intervention,' said Maepa in the letter. 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 The PSCU is questioning the apparent discrepancy between the reported R15.3 million irregular expenditure and the R30.8m logged in the internal register. The union is pressuring for a full disclosure of the irregular expenditure report to understand this contradiction. The union pointed to a seemingly innocuous purchase order of R67m, which ballooned into a staggering R495m lease liability. It raised questions over the motivations behind signing this contract post-audit (23 May 2025), complete with a backdated commencement date (31 July 2024). The leasing agreement was concluded between LCS and GPAA, signed by Lerato Molefi from LCS and previous acting financial officer, Kgaile Molebatsi. 'Not only does this contract commit GPAA to a very expensive project without budget, the current and future objectives by GEPF and GPAA to modernise were not considered,' reads the audit report. 'How does a purchase contract of R67 135 442 translate to an additional R428 255 112.72, making this contract a R495 390 554 project, half a billion rands?' The PSCU is now demanding evidence of Supply Chain Management compliance and the National Treasury approval. The PSCU 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. It said action was needed on this to recoup these substantial losses. According to the union, member data appeared to have been shared unlawfully with service providers, exemplifying a gross breach of the Protection of Personal Information Act (POPIA). It alleged that ICT projects were executed without ICT department oversight, risking system integrity. Provide all contracts, invoices, and approval documents for the LCS, Jicho, LSG, and Shula contracts. The PSCU now requests all pertinent contracts, invoices, and approvals regarding multiple contracts, alongside confirmation of any forensic investigations initiated as per the audit recommendations. The union has taken a firm stance, declaring that a written response is required within a mere seven working days. Should there be no satisfactory reply, the union warned of escalating the matter to various governmental watchdogs, including the Minister of Finance, the Standing Committee on Public Accounts (Scopa), and the Public Protector, alongside the Hawks—South Africa's Directorate for Priority Crime Investigation. Madiehe and the GPAA were not immediately contactable over the weekend. The 66-page audit report by the ABS Audit & Advisory Services confirmed the concerns raised by the PSCU by giving each of the The auditors recommended, among others, that all contracts issued without budget availability be regulated by seeking approval from the GEPF and that all contracts be vetted by GPAA legal chief director and amended to include risk management clauses to protect the GPAA. 'We advise that consistent and continuous compliance is required to ensure reasonable reliance on controls currently in place; and to ensure the consistent attainment of business objectives, and to meet the requirements of the laws and relevant regulations. Furthermore, where the management of risk, control and governance is considered requiring improvement, management should ensure that the residual risks and management concerns are appropriately addressed,' concluded the auditors. 'By addressing the weaknesses that have been identified, this will ensure that the controls implemented within the Government Pensions Administration Agency and its related processes are improved.' BUSINESS REPORT
Yahoo
14-02-2025
- Sport
- Yahoo
Delay of Gompers Park homeless encampment removal prompts little league to move games from park
CHICAGO (WGN) — With the removal of a homeless encampment delayed, Gompers Park Athletic Association (GPAA) is moving their baseball and softball league from the park due to a variety of safety concerns. 'It's just common sense to us. We had an unofficial vote last week or last month in January at this same establishment,' said Ryan Johnson, President of the GPAA. 'We all agreed unanimously that with the ongoing safety concerns, we can't comfortably bring children to the park.' Johnson and members of the GPAA board met at a North Side restaurant Thursday evening, where the body voted unanimously to move their baseball and softball league from Gompers Park, citing concerns about drug use and drug paraphernalia found near playing fields, dog attacks and multiple fires in the area. For at least the last 50 years, GPAA has called Gompers Park home, but now a league that has at least 600 boys and girls playing baseball and softball from ages five through 18 will be moved due to those safety concerns. The City of Chicago previously announced a clear out of the encampment later this month, but that has now been delayed to early March and has been rebranded as an accelerated moving event. 'As long as the accelerated moving event happens on March 5th, or any point before the season starts,' Johnson said. 'And we're comfortable that the tents are gone and we have reassurance that no one will be moving back in the area, we can quickly get the kid's games rescheduled back to that park, which is what everyone wants.' WGN Investigates: Chicago pushes back plans to clear out homeless encampment in Gompers Park JJ Betts, one of the board members of the GPAA, said it's not a political issue, but one purely based around protecting the kids who participate in the league. 'It's all about safety and the safety of the players and the families that participate in our league,' Betts said. 'As of now it's not safe at the park and our families have expressed concern. We're losing registration numbers because of it.' If the measure to move the league passes, GPAA said there are secured fields players will use once their baseball and softball season starts on April 21. 'Mayfair Park has a field that we use for younger kids that are primarily on little Gompers. And Eugene Field, which is about two minutes away,' Johnson said. Ald. Samantha Nugent (39th Ward) and residents around Gompers Park have sent letters to Mayor Brandon Johnson's office asking his administration to expedite the moving event, citing the same safety concerns listed above. The mayor's office has not returned WGN News' request for comment on this story. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
