Chief Executive Officer of the Government Pensions Administration Agency (GPAA), Kedibone Madiehe, has been placed on precautionary suspension with full pay while an investigation into allegations of misconduct concerning high-value procurement transactions is being conducted.
According to media reports, Madiehe is being investigated for alleged procurement breaches costing the GPAA more than R1.2billion.
The Minister of Finance Enoch Godongwana on Friday, 22 August 2025, placed the Chief Executive Officer on suspension effective immediately.
To ensure continuity of operations and effective leadership during this period, Job Stadi Mngomezulu, the Deputy Director-General of Corporate Services at National Treasury, has been seconded to the GPAA and appointed as Acting Chief Executive Officer, effective 25 August 2025.
The CEO’s disciplinary action was implemented in accordance with the President’s Minute No 191 of 2025 and the applicable Disciplinary Code for Senior Management Services, which delegated authority to the Minister of Finance to institute disciplinary processes concerning these allegations.
This includes precautionary suspension, as well as any subsequent steps.
“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,” the National Treasury said on Monday.
The National Treasury, through the Office of the Accountant General (OAG) unit, has commenced a detailed forensic investigation into all allegations against implicated individuals as well as contracts that have been awarded.
The preliminary focus of the investigation will be on the procurement contracts for the GPAA Head Office Lease, African Mobility Bus Lease, Jicho Consulting Contracts and LCS Biometric System Lease.
The Minister, mindful of the need to act quickly while ensuring that the matters under investigation are addressed through proper legal channels and the rights of all parties are respected, is confident the investigation and related disciplinary measures can be completed within the next 60 days.
Pension services to continue
He has assured pensioners specifically, and the public more broadly, that pension services will continue without interruption; and that the investigation will be conducted promptly and thoroughly. He added that there will be minimal disruption to GPAA’s critical operations, and that the highest standards of governance will be maintained.
“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,” Godongwana said.
Mngomezulu joined the Treasury more than two decades ago as Director: Financial Management before being promoted to Chief Financial Officer.
He later served as a Chief Risk Officer before taking up the role of Deputy Director-General: Corporate Services.
Mngomezulu has a Bachelor of Commerce degree in Accounting and a Masters in Business Leadership (MBL) from UNISA, National Treasury Chief Directors Programme at the Gordon Institute of Business Science (GIBS), as well as a certification in board effectiveness for Pension Funds from the International Centre for Pension Management at the Rotman School of Management, University of Toronto. –SAnews.gov.za
DA welcomes GPAA CEO’s suspension, working on next steps
by Dr Mark Burke MP – DA Spokesperson on Finance
The Democratic Alliance welcomes the Finance Minister’s decision to suspend Kedibone Madiehe, the CEO of the Government Pensions Administration Agency (GPAA), following reports of serious wrongdoing.
We also note the appointment of a DDG from National Treasury as an external CEO to oversee the needed course correction at the GPAA. The work needs to start now and the DA does not see the matter as concluded – far from it. Too many implicated government officials linger for years on suspension while still drawing cushy salaries. The DA is pushing for due process to be followed with urgency and for all implicated officials to be fired.
The DA has today written to the incoming CEO of the GPAA, asking him to disclose what the GPAA plans are to investigate all implicated officials (including Eric Morudu) and to reinstate as well as protect whistleblowers. The party is also demanding that the GPAA disclose what steps it will take to recover squandered funds and whether criminal charges have been laid.
If these answers are not sufficient, the DA will not hesitate to approach the Presidency to issue a proclamation asking the SIU to investigate the GPAA and seize funds where appropriate.
