Finance Minister Enoch Godongwana has dismissed Kedibone Madiehe as CEO of the Government Pensions Administration Agency (GPAA), bringing an end to a controversy that began with questions surrounding a disputed R1-billion office lease and widened into multiple investigations into procurement practices at the agency.
The dismissal, according to a statement released by the National Treasury on Friday, took effect on September 2026 after a disciplinary hearing found Madiehe guilty of misconduct linked to procurement processes at the GPAA.
The ministry of finance said the disciplinary process stemmed from several forensic investigations initiated by the National Treasury following allegations, whistleblower reports and media revelations concerning the procurement of the agency’s new head office accommodation, a security services contract and corporate uniform contracts.
READ: State pensions administration agency boss suspended over controversial R1bn lease
The scandal first hogged headlines after concerns emerged over the GPAA’s controversial lease agreement for offices at the Brooklyn Bridge Office building. The nearly R1-billion contract became the focus of scrutiny when questions were raised about the ownership of the property and whether the procurement process complied with applicable regulations.
Madiehe defended the transaction
Madiehe had strongly defended the transaction, insisting that the agency had followed all required governance and supply chain processes and that supporting documentation, including a sale agreement, had been submitted during the tender process. She also maintained that securing new office accommodation was urgent because the GPAA’s existing headquarters had been declared unsuitable for occupation due to infrastructure and compliance concerns.
However, Treasury’s investigations expanded beyond the office lease. The ministry said the forensic probes uncovered serious procurement irregularities and acts of misconduct that resulted in formal disciplinary charges being instituted against Madiehe in her capacity as accounting officer of the GPAA.
A disciplinary hearing chaired by a retired High Court judge commenced on February 2 2026 and concluded with a guilty finding on August 24 2026. Treasury said the hearing found that Madiehe had breached the Public Finance Management Act (PFMA), violated the GPAA’s supply chain management and delegation prescripts, breached fiduciary and contractual duties, shown gross dereliction of duty and exposed the agency to financial and legal risk.
Following the guilty verdict, the chairperson imposed a sanction of dismissal on September 7, which Finance Minister Enoch Godongwana subsequently implemented.
Transgressions needed strong response
In announcing the decision, Godongwana said the seriousness of the transgressions and the findings of the investigations warranted a strong response.
“A decision of this nature, and the sanction that accompanies it, is never taken lightly. However, the evidence from the investigation and the seriousness of the transgressions required a proportionate sanction. Trust is earned through accountability.”
The ministry confirmed that Job Stadi Mngomezulu, Deputy Director-General for Corporate Services at the GPAA, will continue serving as acting CEO while recruitment processes are undertaken to appoint a permanent replacement.
Treasury has instructed the acting leadership to prioritise governance reforms and implement measures aimed at restoring confidence in the agency’s operations.
READ: Treasury sets disciplinary hearing against GPAA CEO Kedibone Madiehe
Madiehe was placed on suspension last August when the controversy erupted after property developer Attacq publicly claimed ownership of the Brooklyn Bridge Office building and stated that it had no intention of selling or leasing the property.
The claim cast doubt over whether Shula Developers, the company awarded the contract, had the legal authority to enter into the lease agreement with the GPAA. The agency subsequently gave Shula Developers until September 1 2026 to resolve the ownership dispute and provide proof of title.
Madiehe at the time warned that legal action could follow should the matter remain unresolved, saying lawyers may need to become involved if confirmation of ownership continues to be delayed.
How Madiehe defended procurement process
Despite mounting criticism, Madiehe had at the time strongly defended the lease agreement, insisting that the procurement process complied with all legal and governance requirements.
Speaking to Sunday World, she said the GPAA had received a valid sale agreement for the property as part of the bid requirements and had satisfied itself that the documentation met the tender specifications.
“From what we have, we had satisfied ourselves that there was a sale agreement. And the sale agreement was part of the tender specifications of this very contract,” she said.
Madiehe rejected allegations that the agency had entered into a lease agreement for a non-existent or “ghost” building, saying oversight committees had physically inspected the site before the contract was approved.
Seven governance checks followed
Madiehe further argued that the lease underwent extensive scrutiny before reaching her desk for final approval.
According to her, the process included reviews by the Bid Specification Committee, Bid Evaluation Committee, Bid Adjudication Committee and several other governance structures designed to ensure compliance with Treasury regulations and the Public Finance Management Act (PFMA).
She had maintained that all decisions were taken in line with established supply chain management procedures and denied allegations that procurement rules had been bypassed.
The CEO also disputed claims that hundreds of millions of rand had already been spent on refurbishing the building.
According to Madiehe, the GPAA had paid only R36.5-million as a contractual pre-payment to Shula Developers and a further R26-million to Dikeamo Architects.
She rejected reports suggesting that approximately R270-million had already been committed towards refurbishments.
Madiehe argued that the agency had little choice but to secure new accommodation because its current Pretoria headquarters had effectively become unsuitable for occupation.
She said assessments conducted on the building revealed serious infrastructure concerns and non-compliance with occupational health and safety regulations, fire regulations and national building standards.
- Finance Minister Enoch Godongwana dismissed Kedibone Madiehe as CEO of the Government Pensions Administration Agency (GPAA) effective September 2026 after a disciplinary hearing found her guilty of misconduct related to procurement processes.
- The disciplinary proceedings followed several forensic investigations into allegations involving the procurement of GPAA’s new office lease, security services contract, and corporate uniform contracts.
- Madiehe defended the nearly R1-billion lease for the Brooklyn Bridge Office building, insisting that all governance and supply chain processes were properly followed and that a valid sale agreement was submitted during the tender process.
- The disciplinary hearing found that Madiehe breached the Public Finance Management Act, violated supply chain management rules, and showed gross dereliction of duty, exposing GPAA to financial and legal risk.
- Deputy Director-General Job Stadi Mngomezulu will serve as acting CEO while Treasury undertakes recruitment for a permanent replacement and focuses on governance reforms at the GPAA.
Finance Minister Enoch
READ: State pensions administration agency boss suspended over controversial R1bn lease
Madiehe had strongly defended the transaction, insisting that the agency had followed all required governance and supply chain processes and that supporting documentation, including a sale agreement, had been submitted during the tender process.
However, Treasury's investigations expanded beyond the office lease.
A disciplinary hearing chaired by a retired High Court judge commenced on February 2 2026 and concluded with a guilty finding on August 24 2026. Treasury said the hearing found that Madiehe had breached the Public Finance Management Act (PFMA), violated the GPAA's supply chain management and delegation prescripts, breached fiduciary and contractual duties, shown gross dereliction of duty and exposed the agency to financial and legal risk.
In announcing the decision,
"A decision of this nature, and the sanction that accompanies it, is never taken lightly. However, the evidence from the investigation and the seriousness of the transgressions required a proportionate sanction. Trust is earned through accountability."
Treasury has instructed the acting leadership to prioritise governance reforms and implement measures aimed at restoring confidence in the agency's operations.
READ: Treasury sets disciplinary hearing against GPAA CEO Kedibone Madiehe
Madiehe was placed on suspension last August when the controversy erupted after property developer Attacq publicly claimed ownership of the Brooklyn Bridge Office building and stated that it had no intention of selling or leasing the property.
Madiehe at the time warned that legal action could follow should the matter remain unresolved, saying lawyers may need to become involved if confirmation of ownership continues to be delayed.
Despite mounting criticism, Madiehe had at the time strongly defended the lease agreement, insisting that the procurement process complied with all legal and governance requirements.
“From what we have, we had satisfied ourselves that there was a sale agreement.
Madiehe rejected allegations that the agency had entered into a lease agreement for a non-existent or "ghost" building, saying oversight committees had physically inspected the site before the contract was approved.
Madiehe further argued that the lease underwent extensive scrutiny before reaching her desk for final approval.
Madiehe argued that the agency had little choice but to secure new accommodation because its current Pretoria headquarters had effectively become unsuitable for occupation.
