The Association for Monitoring and Advocacy of Government Pensions (AMAGP) has exposed the alarming loss of R33 billion in government pension savings. The group claims politically motivated and high-risk investments by the Public Investment Corporation (PIC) have caused the devastating erosion of funds intended for retired public servants.
AMAGP, representing around 8,000 Government Employees Pension Fund (GEPF) pensioners, is demanding transparency and accountability after years of questionable investment strategies.
Failed Projects and Billions Written Off
According to AMAGP spokesperson Zirk Gous, a key example of failed investment is the Daybreak Farms deal. Purchased in 2015 for R1.2 billion on behalf of the GEPF, the poultry enterprise has faced scandal and financial ruin. By May 2025, Daybreak entered business rescue, unable to pay employees, suppliers, or service providers.
“This project was doomed from the start due to poor governance,” said Gous. “Thousands of jobs and pensions have been destroyed.”
But Daybreak is just one part of a much bigger problem. Gous said the PIC’s Isibaya Fund, designed to address social challenges and transformation, has turned into a financial disaster.
Isibaya Fund: High Risk, Low Return
The GEPF, managing R2.3 trillion in pension assets, channels a significant portion into unlisted investments, many through the Isibaya Fund. Though meant to promote transformation and development, Gous claims the fund largely supports politically connected B-BBEE projects, many of which lack financial sustainability.
A judicial commission into the PIC found that 44% of Isibaya’s investments are failing or at serious risk. Over the past two years alone, more than R6 billion has been written off in impaired investments — most from Isibaya.
Gous emphasized the danger of continuing this path: “If this is not high risk, I don’t know what is.”
Political Influence Undermining Pension Safety
AMAGP argues that the PIC and GEPF are under complete political control, with the Minister of Finance having the final say on all investments. Gous warned that using pension funds for political goals violates fiduciary responsibilities.
He accused the GEPF board, PIC board, and Finance Ministry of putting political interests before pensioners. He said their decisions are not only irresponsible but could ultimately shift the burden to South African taxpayers.
“This R33 billion loss may end up being paid for by the public,” Gous cautioned.
Urgent Reforms and Legal Action on the Table
Despite these losses, Gous assured that the GEPF remains solvent and pensioners will continue receiving their monthly payments — for now. However, he warned that unless political control is removed, more money will be lost.
He called for amendments to the Government Employees Pension Law and the PIC Act. He also noted the Mpati Commission had already recommended removing political leadership from the PIC board — a suggestion that has been ignored.
AMAGP is currently exploring legal avenues to challenge the current structure and investment policies. “Reforming the law is the only way to stop further damage,” said Gous.