Finance Minister Enoch Godongwana has placed Government Pensions Administration Agency (GPAA) CEO Kedibone Madiehe on suspension.
Finance Minister Enoch Godongwana’s spokesperson, Mfuneko Toyana, confirmed to Sunday World that Madiehe has been placed on special leave as the National Treasury investigates allegations against her.
“This is not to say she is guilty of anything but to allow investigations to take place,” said Toyana.
The suspension comes as pressure mounted on Madiehe over the uncertainty of who actually owns the building, for which GPAA has signed a R1-billion lease agreement.
Madiehe threatened legal action against Shula Developers should they delay resolving ownership issues over the Brooklyn Bridge Office building.
The rental contract, which is for nine years and 11 months, covers office space and parking.
Insists process followed all rules
During an interview with Sunday World on Thursday, Madiehe insisted that the agency was provided with sale agreement documentation for the building, which was a requirement for the bid.
She acknowledged the ownership dispute must be resolved, saying the GPAA still plans to move into the building within 18 months. This is pending budget finalisation and confirmation of Shula Developers’ title deed, she said.
Concerns were raised after real estate developer Attacq claimed ownership of the Brooklyn Bridge office. It claimed that it had no intention of selling or leasing the offices. Shula Developers has been granted until September 1 to sort these issues.
“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,” said Madiehe.
She said if the process of confirmation of ownership drags on, the matter may have to involve lawyers from both sides.
Critics warn that the deal risks exposing pensioners’ funds to further losses if the lease is found to be irregular or unlawful.
Disputes irregularities claim
Madiehe disputed claims of irregularities. She emphasised the seven steps that were followed before her approval.
These include the Bid Specification Committee, Bid Evaluation Committee, Bid Adjudication Committee, and the Bid Evaluation Committee, among others.
She said at the time that they won the bid, Shula Developers had a sales agreement and the Adjudication Committee also went to visit the site – as she disputed claims that the agency leased a ghost building.
Madiehe also disputed paying R270-million for refurbishment of the building. She said the agency has only paid R36.5-million in contractual pre-payment to Shula Developers and R26-million to Dikeamo Architects.
“All processes that were followed, especially for the building acquisition. We… followed the correct process, due governance, and supply chain management processes. All are aligned with Treasury regulations and the Public Finance Management Act (PFMA).
All about protecting public servants
“Everything that we have is ultimately about protecting the interests of the public servants. Because as the GPAA we are responsible for 1.7 million members and beneficiaries. And we manage quite a substantial amount of clients. These …include the GPF, the National Treasury and the Department of Military Veterans.
She said it was necessary for the GPAA to secure a new office urgently. The current headquarters based in Pretoria had been declared uninhabitable, she said.
She said the Department of Public Works had also flagged the adequacy of working space and weak infrastructure. And the findings from conducted assessments also revealed that the building is also non-compliant with the legislative provisions.
These include the Occupational Safety and Health Act, National Building Regulations and Fire Regulations.
She said if injuries occur, the accounting officer may be held liable, as the issues have already been raised.
Parliament wants answers
Madiehe has been summoned to appear before Parliament’s Portfolio Committee on Public Service and Administration. She said she is ready to provide all necessary documentation needed.
The Democratic Alliance insist that the GPAA’s leadership must be held accountable for proceeding with such costly and contested contracts. All while disputes over ownership and procurement remain unresolved.
