Latest news with #Hlengwa
IOL News
29-05-2025
- Business
- IOL News
Suspended Road Accident Fund boss tight-lipped over allegations of interference
Road Accident Fund CEO has been place on a special leave amid an ongoing investigation. Image: Sapa ALLEGATIONS of possible interference by executives and staff in an investigation into a controversial R79 million lease deal led to the suspension of Road Accident Fund's chief executive officer Collins Letsoalo, says the fund. Letsoalo, whose term expires in August, will still receive his salary and other benefits. The Special Investigations Unit (SIU) is currently investigating the RAF for alleged corruption and maladministration. Letsoalo has been implicated in several allegations of financial mismanagement and corruption, primarily centered around a controversial R79 million lease deal for the RAF's office in Johannesburg. The SIU preliminary report alleges that Letsoalo interfered with the procurement processes by overturning the bid committee's decision to favour property management company Mowana Properties, which ultimately secured the contract. The allegations were extended beyond the lease to include irregularities in other RAF contracts such as a R19m cleaning and security contract that was irregularly extended over six years, as well as R313m backlog project that was unlawfully awarded with inflated costs. Transport Deputy Minister Mkhuleko Hlengwa said the decision against Letsoalo was taken by the RAF board during a meeting. Hlengwa announced the suspension during a Standing Committee on Public Accounts meeting on Wednesday, where the RAF was expected to give an update on the SIU investigation. Hlengwa said this was a precautionary measure and did not constitute disciplinary action. He said the board exercised its fiduciary duties in terms of the Road Accident Fund Act, 56 of 1996, the Public Finance Management Act, 1 of 1999, and in alignment with the principles of good governance as set out in King IV. Hlengwa added that the decisions did not imply any prejudgement or adverse finding against Letsoalo. 'The special leave arrangement will remain in place until the conclusion of the relevant investigations by the SIU, or such earlier date as the board may determine. The board will review the situation on a monthly basis and communicate the updates,' said Hlongwa. He said that during this period, Phathutshdzu Lukhwareni will serve as acting CEO to ensure operational continuity. Hlengwa added that, as the shareholder, the Department of Transport Ministry supports the decision that the RAF board has taken and believes it was in the collective interests of the investigation, particularly as it is in the final stages. Scopa is in possession of the SIU's preliminary report. He said the Transport Ministry has not been briefed by the SIU on matters related to the investigation. 'We do not have the opportunity to engage the SIU either and therefore we do not have the benefits of the committee's perspective on matters related to the investigation, " said Hlengwa. RAF board chairperson, Zanele Francois, said alleged interference by executives and staff was the reason the board believes Letsoalo must be placed on special leave. 'The board is taking this very seriously, which is why we believe Mr Letsoalo must be distanced from the process while it runs its course,' she said. 'We felt it was necessary to give him time off to address personal conflicts related to this process, to reflect on his role, and to ensure the organisation is not brought into disrepute. The board also needs to show its support for parliamentary oversight structures,' she said, adding that the board was in communication with the SIU and would meet the unit in June as part of the ongoing investigation. Cape Times
The Star
28-05-2025
- Business
- The Star
RAF CEO Collins Letsoalo on special leave after 'interference by executives and staff' into multi-million Rand probes
Collins Letsoalo, the CEO of the Road Accident Fund (RAF), has been placed on special leave as a precautionary step to facilitate the ongoing investigation by the SIU into a controversial R79 million lease deal for the RAF's office in Johannesburg. Transport Deputy Minister Mkhuleko Hlengwa said the decision was taken by the RAF board during a meeting on Tuesday. Hlengwa revealed the latest development during a Standing Committee on Public Accounts meeting on Thursday, where the RAF was expected to give an update on the investigation conducted by the Special Investigating Unit (SIU). This follows allegations of possible interference by executives and staff in the investigation process. Letsoalo, whose term expires in August, will still receive his salary and other benefits. The SIU is currently investigating the RAF for alleged corruption and maladministration. Letsoalo has been implicated in several allegations of financial mismanagement and corruption, primarily centered around a controversial R79 million lease deal for the RAF's office in Johannesburg. The SIU preliminary report alleges that Letsoalo interfered with the procurement processes by overturning the bid committee's decision to favor property management company Mowana Properties, which ultimately secured the contract. The allegations were extended beyond the lease to include irregularities in other RAF contracts such as a R19m cleaning and security contract that was irregularly extended over six years, as well as R313m backlog project that was unlawfully awarded with inflated costs. Hlengwa said that the decision was taken solely in the interest of good governance. He said this was a precautionary measure and did not constitute disciplinary action. He said the board exercised its fiduciary duties in terms of the Road Accident Fund Act, 56 of 1996, the Public Finance Management Act, 1 of 1999, and in alignment with the principles of good governance as set out in King IV. Hlengwa added that the decisions did not imply any prejudgement or adverse finding against Letsoalo. 'The special leave arrangement will remain in place until the conclusion of the relevant investigations by the SIU, or such earlier date as the board may determine. The board will review the situation on a monthly basis and communicate the updates,' said Hlongwa. He said that during this period, Phathutshdzu Lukhwareni will serve as acting CEO to ensure operational continuity. Hlengwa added that, as the shareholder, the Department of Transport Ministry supports the decision that the RAF board has taken and believes it was in the collective interests of the investigation, particularly as it is in the final stages. Scopa is in possession of the SIU's preliminary report. He said the Transport Ministry has not been briefed by the SIU on matters related to the investigation. 'We do not have the opportunity to engage the SIU either and therefore we do not have the benefits of the committee's perspective on matters related to the investigation, said Hlengwa. However, he admitted that the department was aware of the investigation but remained clueless about the outcomes. He said the department also expects the RAF to cooperate with the investigation until it reaches its logical conclusion and then receive the recommendations and outcomes of that investigation. 'However, I do believe that the board would have applied its mind in the matters before it and before this committee and the matters before the SIU to arrive at the decisions that they have arrived at,' he said. Meanwhile, the RAF board chairperson, Zanele Francois, said there were serious allegations, including possible interference by executives and staff in the investigation. She said this is the reason the board believes Letsoalo must be placed on special leave. 'The board is taking this very seriously, which is why we believe Mr Letsoalo must be distanced from the process while it runs its course,' she said. 'We felt it was necessary to give him time off to address personal conflicts related to this process, to reflect on his role, and to ensure the organisation is not brought into disrepute. The board also needs to show its support for parliamentary oversight structures,' she said, adding that the board was in communication with the SIU and would meet the unit in June as part of the ongoing investigation. RAF spokesperson Linda Rulashe said the fund would issue a statement once an official response was available. Letsoalo was approached for comment but said he did not want to speak to the media. * This story has been updated to include comment from the RAF and Letsoalo. [email protected]
IOL News
28-05-2025
- Business
- IOL News
RAF CEO Collins Letsoalo on special leave after 'interference by executives and staff' into multi-million Rand probes
Road Accident Fund CEO has been place on a special leave amid an ongoing investigation. Image: Sapa Collins Letsoalo, the CEO of Road Accident Fund (RAF), has been placed on special leave as a precautionary step to facilitate the ongoing investigation by the SIU into a controversial R79 million lease deal for the RAF's office in Johannesburg. Transport Deputy Minister Mkhuleko Hlengwa said the decision was taken by the RAF board during a meeting on Tuesday. Hlengwa revealed the latest development during a Standing Committee on Public Accounts meeting on Thursday, where the RAF was expected to give an update on the investigation conducted by the Special Investigating Unit (SIU). This follows allegations of possible interference by executives and staff in the investigation process. Letsoalo, whose term expires in August, will still receive his salary and other benefits. The SIU is currently investigating the RAF for alleged corruption and maladministration. 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 Next Stay Close ✕ Letsoalo has been implicated in several allegations of financial mismanagement and corruption, primarily centered around a controversial R79 million lease deal for the RAF's office in Johannesburg. The SIU preliminary report alleges that Letsoalo interfered with the procurement processes by overturning the bid committee's decision to favor property management company Mowana Properties, which ultimately secured the contract. The allegations were extended beyond the lease to include irregularities in other RAF contracts such as a R19m cleaning and security contract that was irregularly extended over six years, as well as R313m backlog project that was unlawfully awarded with inflated costs. Hlengwa said that the decision was taken solely in the interest of good governance. He said this was a precautionary measure and did not constitute disciplinary action. He said the board exercised its fiduciary duties in terms of the Road Accident Fund Act, 56 of 1996, the Public Finance Management Act, 1 of 1999, and in alignment with the principles of good governance as set out in King IV. Hlengwa added that the decisions did not imply any prejudgement or adverse finding against Letsoalo. 'The special leave arrangement will remain in place until the conclusion of the relevant investigations by the SIU, or such earlier date as the board may determine. The board will review the situation on a monthly basis and communicate the updates,' said Hlongwa. He said that during this period, Phathutshdzu Lukhwareni will serve as acting CEO to ensure operational continuity. Hlengwa added that, as the shareholder, the Department of Transport Ministry supports the decision that the RAF board has taken and believes it was in the collective interests of the investigation, particularly as it is in the final stages. Scopa is in possession of the SIU's preliminary report. He said the Transport Ministry has not been briefed by the SIU on matters related to the investigation. 'We do not have the opportunity to engage the SIU either and therefore we do not have the benefits of the committee's perspective on matters related to the investigation, said Hlengwa. However, he admitted that the department was aware of the investigation but remained clueless about the outcomes. He said the department also expects the RAF to cooperate with the investigation until it reaches its logical conclusion and then receive the recommendations and outcomes of that investigation. 'However, I do believe that the board would have applied its mind in the matters before it and before this committee and the matters before the SIU to arrive at the decisions that they have arrived at,' he said. Meanwhile, the RAF board chairperson, Zanele Francois, said there were serious allegations, including possible interference by executives and staff in the investigation. She said this is the reason the board believes Letsoalo must be placed on special leave. 'The board is taking this very seriously, which is why we believe Mr Letsoalo must be distanced from the process while it runs its course,' she said. 'We felt it was necessary to give him time off to address personal conflicts related to this process, to reflect on his role, and to ensure the organisation is not brought into disrepute. The board also needs to show its support for parliamentary oversight structures,' she said, adding that the board was in communication with the SIU and would meet the unit in June as part of the ongoing investigation. The story will be updated when the RAF responds.
IOL News
13-05-2025
- IOL News
No more freeloading from the RAF, it's not a lottery, warns the Deputy Transport Minister Hlengwa
Transport Deputy Minister Mkhuleko Hlengwa. Image: Doctor Ngcobo/ Independent Newspapers OPPORTUNISTS looking to freeload from the Road Accident Fund with tall stories of misfortune or deliberately harm themselves to secure pay days must refrain from such activities. That was warning sounded by Transport Deputy Minister Mkhuleko Hlengwa to those who planned to perpetrate acts of fraud to benefit unfairly and drain the RAF of resources that could benefit deserving claims. Hlengwa made those utterances about fraudsters trying to hit the jackpot with their fictitious claims at the launch of the 8th United Nations Global Road Safety Week campaign in Durban on Sunday. The RAF's Snegugu Mavundla said that the entity was beset with constant fraudulent claims, which triggered the Minister's reaction. Mavundla said that at times, they were unable to help members of the public because there were people who lie and cheat, or plan to throw themselves in front of moving vehicles because they know they will get millions of rands in return. However, the RAF was now in a position to side-step such claims because there were many steps to go through before a supposed road crash victim gets their hands on money they thought they would get. In response, Hlengwa told those harbouring hopes of getting hurt in road incidents that, 'there is no money and National Treasury says they were only collecting R2,17 from every litre of petrol or diesel at the pumps and had to give money to the RAF, besides it's one of the things increasing the cost of living in South Africa'. 'Go look for other ways to get money because soon we will close the R2,17 per litre tap.' He said because of the exorbitant amounts collected from the RAF, he and Transport Minister Barbara Creecy have agreed and have written a draft bill, which they will take to Parliament, which will then reduce the amount payable to people. Hlengwa said the RAF is not the lotto. 'It serves as government intervention for those who cannot help themselves. Therefore, we curse this abuse of the RAF,' Hlengwa said. Hlengwa also expressed concern over road safety in South Africa. 'Let us not speed on the roads,' Hlengwa said. 'We encourage having a second driver for long distances so there is rest every 200km, every two hours because another thing the RTMC and the department realised when releasing statistics is that driver exhaustion behind the wheel has a big impact in causing crashes.' He added: 'I want to, therefore, indicate that it is of critical importance that we do the right things, have the right driver behind the steering wheel, and ensure the roadworthiness of our vehicles on the road. When you are a driver, you don't just drive your own vehicle, you drive the entire ecosystem, you drive all vehicles around you. It forces you to be observant.' [email protected] DAILY NEWS
IOL News
13-05-2025
- IOL News
The RAF is not a lottery, says Deputy Transport Minister Hlengwa
Transport Deputy Minister Mkhuleko Hlengwa. Image: Doctor Ngcobo/ Independent Newspapers Transport Deputy Minister Mkhuleko Hlengwa has sent a message to those trying to defraud the Road Accident Fund (RAF), saying it is not a lottery jackpot. Hlengwa made these comments launching the 8th United Nations Global Road Safety Week campaign in Durban on Sunday. The RAF's Snegugu Mavundla, who said fraud was a challenge within the government agency, sparked the Minister's reaction. Mavundla said that at times, they cannot help the public because there are people who lie, plan or throw themselves in front of moving vehicles because they know they will get millions of rands. However, now the RAF can avoid this because there are many steps to go through before the road crash victim gets the money they thought they would get. Reacting, Hlengwa told those budgeting on getting hurt in road incidents that, 'there is no money and National Treasury says since we are collecting R2,17 a litre of petrol or diesel at the pumps and then giving the RAF, it's one of the things increasing the cost of living in South Africa'. 'Go look for other ways to get money because soon we will close the R2,17 per litre tap.' He said because of the exorbitant amounts collected from the RAF, he and Transport Minister Barbara Creecy have agreed and have written a draft bill, which they will take to Parliament, which will reduce the amount payable to people. Hlengwa said the RAF is not the lotto. 'It serves as government intervention for those who cannot help themselves. Therefore, we curse this abuse of the RAF,' Hlengwa said. Meanwhile, Hlengwa also expressed concern over road safety in South Africa. 'Let us not speed on the roads,' Hlengwa said. 'We encourage having a second driver for long distances so there is rest every 200km, every two hours because another thing the RTMC and the department when releasing statistics is that exhaustion on the road behind the wheel has a big impact in causing crashes.' He added: 'I want to, therefore, indicate that it is of critical importance that we do the right things, have the right driver behind the steering wheel, and ensure the roadworthiness of our vehicles on the road. When you are a driver, you don't just drive your own vehicle, you drive the entire ecosystem, you drive all vehicles around you. It forces you to be observant.'
