The Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) are characterised by investment write-offs, questionable transactions and poor governance.
In December the PIC admitted to parliament that it had failed to fully implement all recommendations of the 2020 Mpati judicial commission.
At arbitration in late 2025 the PIC was ordered to pay R411m to Acapulco Trade & Invest for its interest in Lanseria. In a huge valuation discrepancy, the GEPF valued its 38% stake at R198m, but the PIC paid more than R400m for 25% from a BEE partner that had defaulted on its original loan.
The poultry company Daybreak Farms remains a major bone of contention. Despite years of losses and mismanagement, the PIC injected a further R150m into the company in July 2025, bringing its total exposure to about R1.7bn.
Chief investment officer Kabelo Rikhotso was suspended in October 2025 pending an investigation into misconduct. Towards the end of last year the CEO of the Government Pensions Administration Agency (GPAA) was suspended by the finance minister amid allegations of mismanagement and procurement irregularities related to a planned office relocation.
GEPF members are experiencing lengthy delays in receiving resignation, divorce and death benefits. Despite these problems, the fund reported 13.1% growth in the value of its portfolio to R2.69-trillion for the 2024/2025 period, though this was accompanied by significant investment write-offs.
The critical question is why the government is doing so little to protect pensioners. Many promises are made, but who follows up to ensure the promises are delivered? What can pensioners expect from the pension increase scheduled for April 1 this year?
Joe Kleinhans
Villieria
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