By OBAKENG MAJE
1 September 2025 – The Portfolio Committee on Public Service and Administration on Monday said it has noted with concern reports relating to the repayment of R36 million based on a “ghost contract” of the Government Pensions Administration Agency (GPAA).
The committee said this follows earlier media reports alleging that the GPAA paid Shula Developers, who allegedly misrepresented themselves as the landlord, R36 million upfront to lease a building for the GPAA’s headquarters.
The Chairperson of the Committee, Jan de Villiers said according to media reports, the developers paid the refund only after earlier reports revealed alleged irregularities. De Villiers said the refund reportedly did not include interest, which amounts to approximately R4 million.
“Responding to the report by News24, the committee will seek clarity on why such a large upfront payment was allegedly authorised, if the underlying contract was fraudulent and why the repayment was allegedly made only after the matter was reported in the media.
“The committee also wants to know which GPAA officials authorised the payment and whether they will face consequences if wrongdoing is confirmed,” he said.
De Villiers further said the committee will also seek clarity on whether the arrangement between the GPAA and Shula Developers constitutes potential corruption that now requires accountability from both the company and implicated officials. He added that the committee also expressed concern about reports that R26 million was paid to Dikeamo Architects for office designs linked to the same building.
“Not only would this represent wasteful expenditure on a property that could never be leased, but the sum itself appears unusually high for architectural planning services,” said the Chairperson.
“The committee will seek clarity on whether this payment was justified and whether there was any misrepresentation,” said de Villiers.
He said the committee will invite the GPAA to appear before it to account and outline steps being taken to investigate and recover any losses. De Villiers said the committee will write to the Auditor-General, the National Treasury and relevant law enforcement authorities to ensure that the full facts are established.
“They should ensure that an appropriate financial recovery, including interest, is pursued and that any proven corruption is dealt with decisively through consequence management and prosecution.
“GEPF members and pensioners entrust the government with their life savings. To see those funds placed at risk through such allegations is unacceptable,” he said.
De Villiers said the committee remains committed to ensuring that this matter is thoroughly investigated and that accountability is enforced.
The Guardian 