More than R3.6 billion linked to South African public servants’ retirement savings has been written off after investments in 15 companies became completely worthless.
The losses involve money managed on behalf of teachers, nurses, police officers and other government employees through the Government Employees Pension Fund (GEPF), the country’s largest pension fund.
The write-offs have renewed questions about how billions of rand in retirement savings were invested in companies that ultimately collapsed.
At the centre of the issue is the Public Investment Corporation (PIC), the state-owned asset manager responsible for investing funds on behalf of the GEPF. During the 2024/25 financial year, approximately R3.6 billion in investments was written off after a number of companies lost all of their value.
A 100% loss means the investments became worthless, leaving little or no chance of recovering the money.
Among the most notable failed investments were Daybreak Foods and Independent Media, both of which have faced serious financial difficulties in recent years. These companies formed part of a broader group of investments that ultimately delivered no return to the pension fund.
While the losses represent only a small portion of the GEPF’s total assets, the figures remain significant. The Government Employees Pension Fund manages the retirement savings of more than one million active members and over 500,000 pensioners, making it one of the largest pension funds on the African continent.
The revelations have sparked fresh debate about oversight and accountability. Critics argue that stronger due diligence and risk assessments should have been conducted before public funds were committed to investments that later failed. Others have called for greater transparency around how investment decisions are approved and monitored.
For many South Africans, the issue goes beyond balance sheets and investment portfolios. Every month, public servants contribute a portion of their salaries towards retirement with the expectation that their savings will be protected and managed responsibly.
The good news is that there is no immediate threat to pension payments. The GEPF remains financially stable, with assets valued at approximately R2.69 trillion, and current pensioners are expected to continue receiving their benefits as normal.
However, the losses have reignited concerns about how public money is managed and whether enough safeguards exist to prevent similar write-offs in the future.
For many South Africans, the question is no longer simply how 15 investments became worthless.
The bigger question is how billions of rand in public servants’ retirement savings ended up in those investments in the first place.
As calls for greater transparency grow louder, pension fund members will be looking for answers—and accountability.
Article written by:
Hudaa Ahmed
Journalist at Radio Al Ansaar
