Collins Letsoalo placed on special leave as CEO of the Road Accident Fund amid corruption allegations
Collins Letsoalo placed on special leave as CEO of the Road Accident Fund amid corruption allegations
Letsoalo, who appeared before the Standing Committee on Public Accounts (Scopa) this morning, was suspended with full pay.
The Road Accident chief executive, Collins Letsoalo, has been placed on special leave.
He has been implicated in several allegations of financial mismanagement and corruption, primarily centred around a controversial R79 million lease deal for the offices in Johannesburg.
A preliminary report by the Special Investigating Unit (SIU) found that Letsoalo interfered with the procurement process by overturning a bid committee's recommendation to favour Mowana Properties, a losing bidder linked to the Government Employees Pension Fund, which ultimately secured the lease agreement.
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IOL News
5 days ago
- IOL News
RAF Situation: Issues of leadership, accountability, and justice
Collins Letsoalo, was placed on special leave on May 27, 2025, and formally suspended a week later. Image: Thobile Mathonsi/Independent Newspapers EMBATTLED Road Accident Fund (RAF) chief executive, Collins Letsoalo, was placed on special leave on May 27, 2025, and formally suspended a week later. Initially, the issue involved allegations of financial irregularities, including a R79 million lease under investigation by the Special Investigating Unit (SIU). This evolved into charges of insubordination after he did not appear before Parliament's Standing Committee on Public Accounts (Scopa). Letsoalo claims that his removal is due to his disrupting entrenched practices within the organisation. He has accused legal elites, some now judges, of misusing RAF resources. He has requested an independent commission of inquiry and cited threats to his safety and alleged bias within the judiciary. This situation highlights a significant accountability issue within the institution, marked by inconsistent leadership decisions. Notably, the board had resolved to renew Letsoalo's contract, but then suspended him shortly after. This indicates governance challenges. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Effective crisis management requires consistent messaging, transparency, and a unified response. The RAF board has shifted its stance from financial misconduct allegations to claims of insubordination. Meanwhile, Letsoalo has publicly shared his side, resulting in ongoing media coverage. This has led to a decline in trust. When institutions fail to manage their narratives effectively, confusion and reputational damage can ensue. The SIU investigation into the R79m lease raises serious concerns about RAF's internal controls. The charge of insubordination against Letsoalo for not appearing before Parliament suggests potential issues with how political accountability is managed within the institution. Public institutions should operate based on principles rather than personal discretion. A significant aspect of Letsoalo's defence involves questioning judicial impartiality. Accusations against judges raise broader issues beyond individual HR matters. Perceptions of judicial bias can undermine public confidence in the courts. Letsoalo has called for a non-judicial inquiry into RAF-related rulings, highlighting concerns about public trust in the judiciary. Amid these developments, the primary beneficiaries of the RAF, accident survivors, are often overlooked. While internal disputes continue, many South Africans await compensation and rehabilitation. The RAF's mission includes alleviating the suffering of those affected by accidents. Continued delays in resolving this crisis impact justice and support for these individuals. The RAF's current situation reflects broader issues within South African governance. Without reform, the institution risks further dysfunction. There is a need for public institutions to focus on serving the people and for leaders to maintain high standards of integrity. The effectiveness of the RAF in protecting vulnerable individuals must be restored. Whether Letsoalo is seen favourably or unfavourably will be determined through legal processes. However, the current state of the RAF indicates an urgent need for improvement. * Nyaniso Qwesha holds an MBA. ** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media.
IOL News
12-06-2025
- IOL News
RAF acting CEO defends delaying in suspending senior official
The Road Accident Fund's top official maintains that he was not going to rubber stamp a board decision to suspend a senior official without applying his mind. Image: File Road Accident (RAF) acting CEO Phathutshedzo Lukhwareni has stood his ground after he took his time to apply his mind before suspending a fellow executive on a recent instruction by the board of directors. Lukhwareni said if his conduct was considered to be insubordination, he was ready to face disciplinary charges. 'I was never going to be a rubber stamp to that decision. I decided to apply my mind until I received the file and did my own assessment with human resources. If that assertion is considered insubordination, I am prepared to face that charge,' he said. Lukhwareni made the comment at a meeting of the Transport Portfolio Committee on Wednesday night when he was quizzed about the delay in placing acting chief investment officer Sefotle Modiba on precautionary suspension in connection with his appointment at the entity. Modiba's suspension was announced by deputy board chairperson Nomonde Mabuya-Moloele at a meeting with the Portfolio Committee earlier this month. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Mabuya-Moloele had told the Portfolio Committee that Modiba was placed on precautionary suspension with full pay and benefits with immediate effect in connection with his past employment at the City of Johannesburg. The issue of Modiba was brought up in the meeting when MPs wanted to know if he had been vetted after joining RAF from the City of Johannesburg. Lukhwareni stated that background checks had been done and a reference check was also done with his former employer. 'Vetting is a comprehensive process and we submitted our forms to the State Security Agency and they are being processed at this point in time,' he said. But, Deputy Minister Mkhuleko Hlengwa asked him to update the committee on his status at RAF after a letter was received from the City of Johannesburg indicating that Modiba resigned on the eve of the conclusion of a disciplinary process. 'I don't understand why you want to skirt around that matter. I hope this gives a glimpse of what we are dealing with,' Hlengwa said. 'You can't speak about vetting in your response and don't add the latest developments unless the board did something different,' he said. In response, Lukhwareni confirmed that Modiba has been placed on suspension on Tuesday as per the resolution of the board. Lukhwareni was criticised by committee chairperson Donald Selamolela for being secretive with Parliament. 'We are not here to play. It is after 9pm and listening to you bluffing when you know the context and still want to hide other things. I plead with you, please answer so that we don't have follow up questions,' said Selamolela. Lukhwareni apologised, but Selamolela warned 'you are exhausting your daily limit of apologies'. In explaining the matter further, Lukhwareni said the instruction to suspend Modiba was sent to him a day after the board took the decision. 'As the acting CEO I have the responsibility to consider what the board communicated in arriving in that decision. I was warned about possible delays. When the announcement was made to the Portfolio Committee on Transport, the acting CIO was sitting with us in the boardroom. It can't be correct that you must just sign the letter and when (you do not sign it), it becomes a problem,' he said.
The Star
12-06-2025
- The Star
AG still concerned about use of consultants in KZN municipalities
The Auditor General South Africa (AGSA) has seen an improvement in some KwaZulu-Natal municipalities including their reliance on consultants which decreased from R240 million to R220 million spent annually. Image: File The office of the Auditor General South Africa (AGSA) has seen an improvement in some KwaZulu-Natal municipalities, and while consultants are widely used, there has been a reduction in consultancy fees from R240 million to R220 million in the last financial year. Irregular expenditure also decreased from R6.2 billion to R5.7 billion. Nomalungelo Mkhize, AGSA Business Unit Leader in KZN, presented the local government audit outcomes of the Municipal Financial Management Act (MFMA) to the KZN Legislature-Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee on Cooperative Governance and Traditional Affairs(Cogta), on Tuesday. Mkhize said they made a call to action at the end of the financial cycle in 2022 and 2023, requesting leadership to ensure that the key service delivery indicators are being prioritised with adequate funding to fast track infrastructure projects and to ensure that there is adequate budget for repairs and maintenance. Mkhize said that the AGSA has seen an increase or a gradual improvement compared to 2022 and 2023 in terms of the audit outcomes. Mkhize said that this demonstrates that the municipalities and the officials are able to present a credible set of financial statements indicating how the monies have been spent. 'Although we have seen a decrease in the use of consultants there are a number of municipalities that do use consultants for financial reporting. We still find misstatements in the work that the consultants are doing and at times the consultants are taking on work where they can see that they may not be able to conclude the work with quality. "We are also finding that consultants are not being monitored to see whether there is delivery according to what was contracted for." The AGSA said that municipalities are still struggling with action plans not being implemented and that there was a lack of enforcement being taken against officials that are found to have transgressed previously. Mkhize said that this is the root cause for the continued transgressions and the non-performance in some municipalities. "It then creates the culture that non-compliance can go on without the necessary consequence management. Officials are not being held accountable," she said. Mkhize said that poor payment practices are resulting in interest charges and penalties. Mkhize said poor management of electricity and water distribution losses are above the acceptable norms in a number of municipalities. "There is a concern regarding the credibility of share grants received from national and provincial government. If it was any other business they would actually be at a point where they need to be closed. There is also insufficient funds that are available to complete projects," she said. The AGSA said that in municipalities that ended the year in deficit, where expenditure was more than revenue, many of them already started eating into the next year's budget. [email protected]
