RISE Mzansi is calling for urgency in a Special Investigating Unit (SIU) investigation into Road Accident Fund (RAF) CEO Collins Letsoalo, who has been placed on special leave, with immediate effect, by the RAF board.

Letsoalo is implicated in an investigation relating to a R79-million lease for RAF offices in Johannesburg, as well as alleged financial mismanagement and corruption.

He will be on special leave until the conclusion of the SIU’s investigations, or an earlier date determined by the board.

The Department of Transport announced that Phathutshedzo Lukhwareni will serve as the acting CEO, to ensure continuity of operations.

As the delegated shareholder representative Transport Deputy Minister Mkhuleko Hlengwa was informed by the board of this “precautionary measure”, which it stressed is not disciplinary action or an indication of Letsoalo’s guilt.

“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes. It does not imply any prejudgment or adverse finding against the CEO,” the department said.

Hlengwa has indicated that the issue is on the agenda for the board meeting scheduled for June 9.

RISE Mzansi National Assembly Caucus Whip and member of the Transport Portfolio Committee Makashule Gana said without influencing the work of the SIU, the party would like to see this matter concluded before Letsoalo’s contract expires in August, to ensure that he is held accountable, if he is found guilty.

“At every turn, RISE Mansi will use its unique position in the Government of National Unity to advocate for good governance that serves the people of South Africa and protects the public purse,” he explained.

Gana commended RISE Mansi national leader Songezo Zibi for the work his team is doing to ensure that governance and financial matters at RAF are brought under control and in line with laws of the country.

DELAYS IN ACTION

Meanwhile, the Organisation Undoing Tax Abuse (Outa) said while it commended the RAF board for "finally" taking decisive action, it believes the decision was "long overdue" and said the board had a lot to answer for, regarding the delays in acting against Letsoalo.

Outa said it had consistently raised red flags about the "troubling direction" the RAF had taken under Letsoalo’s leadership.

Outa executive director of accountability Stefanie Fick said she trusted that the board’s decision would be a turning point for the RAF and that the Minister and the board would ensure that good governance and stringent oversight by a “competent board” would get the RAF back on track.

Fick pointed out that in 2023, a High Court ruling ordered Letsoalo and the RAF board to personally pay legal costs owing to their mismanagement in legal proceedings, which she said was a “rare and damning” indictment of executive failure.

“We wonder whether Letsoalo has complied with this ruling,” she said.

She noted that for years, Outa and others in civil society had raised alarms about the RAF’s declining performance.

“…the Fund’s liabilities have now ballooned beyond R300-billion, threatening its long-term viability and undermining its constitutional duty to compensate road accident victims. Furthermore, we know of several senior managers who have been unfairly pushed out or exited the RAF on account of pressure applied by Letsoalo,” she said.

Fick highlighted that Letsoalo’s suspension was not only “justified, but also embarrassingly overdue”, noting that this was someone who was fired from the Passenger Rail Agency of South Africa yet was given another chance to lead — and failed again.

She pointed out that during his tenure at the RAF, Letsoalo oversaw “ballooning liabilities, a massive backlog of unpaid claims, and a growing legal bill from court battles that often targeted oversight institutions”.

“…shockingly, while the RAF’s finances deteriorated, Letsoalo’s salary increased — a slap in the face to the thousands of victims still waiting for compensation and justice,” she noted.

TRANSPARENCY AND ACCOUNTABILITY

The Democratic Alliance (DA) said Letsoalo’s temporary removal from office must facilitate full transparency and accountability, in light of the serious allegations against him.

DA spokesperson on Transport Dr Chris Hunsinger said his party further noted that RAF board chairperson Zanele Lorraine Francois was also under scrutiny for alleged governance failures and a refusal to comply with parliamentary oversight requests.

Hunsinger said allegations that Letsoalo may have misled Parliament about his vetting status only deepened the party’s concerns, leading for it to call for the RAF to be subjected to rigorous institutional reform.

The party said it would continue to push for confirmation and the fast-tracking of the vetting status of senior RAF leadership by State Security; and for transparency in the SIU’s investigation timeline and scope.