Latest news with #Letsoalo
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
IOL News
29-05-2025
- Business
- IOL News
Road Accident Fund CEO placed on special leave amid corruption investigation
Road Accident Fund CEO has been place on a special leave amid an ongoing investigation. Image: Sapa Collins Letsoalo, the CEO of the Road Accident Fund (RAF), has been placed on special leave as a precautionary measure while an ongoing investigation by the Special Investigating Unit (SIU) investigates a controversial R79 million lease deal for the RAF's Johannesburg office. This significant development was disclosed by Transport Deputy Minister Mkhuleko Hlengwa during a Standing Committee on Public Accounts meeting, where RAF officials were expected to provide an update on the SIU investigation. The SIU was scrutinising the RAF for allegations of corruption and maladministration, with Letsoalo at the heart of the inquiries. Accusations against him include alleged interference in procurement processes, notably overturning a bid committee's favourable decision for property management company Mowana Properties, which led to the securing of the lucrative lease contract. 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Next Stay Close ✕ The SIU's preliminary report indicates a pattern of financial mismanagement under Letsoalo's leadership, extending beyond the lease to include irregularities in a R19 million cleaning and security contract improperly extended over six years, and a R313 million backlog project awarded with inflated costs. During the meeting, Hlengwa emphasised the board's commitment to good governance, stating that Letsoalo's special leave should not be viewed as disciplinary action. "This decision was taken solely in the interest of good governance," he underscored, explaining that it aligned with the Road Accident Fund Act and the principles of the Public Finance Management Act. The board's fiduciary responsibilities guided their decision, promising that the special leave would remain in effect until the SIU concludes its investigation. At the same time, the Department of Transport expressed full support for the RAF board's decision. Hlengwa clarified that while the SIU's preliminary report was in the possession of the Standing Committee on Public Accounts, the Transport Ministry has not been officially briefed on the investigation's details. "The department is aware of the investigation but remains unclear about the outcomes," Hlengwa acknowledged during the session. He further stressed the expectation that the RAF would fully cooperate with the ongoing investigation until its conclusion, adding that the board had given due consideration to all pertinent matters impacting their decision. RAF board chairperson Zanele Francois reinforced the gravity of the allegations against Letsoalo, articulating a firm belief that he must be distanced from the ongoing investigation to maintain the integrity of the organisation. "We felt it was necessary to give him time off to address personal conflicts related to this process," she explained, highlighting the board's commitment to transparency and accountability. As the investigation proceeds in its final stages, Phathutshdzu Lukhwareni has been appointed as the acting CEO to ensure operational continuity while Letsoalo is on leave. The board is expected to review the situation monthly and communicate updates as the inquiry develops.
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]
TimesLIVE
28-05-2025
- Business
- TimesLIVE
DA welcomes RAF CEO Collins Letsoalo's placement on special leave
The placement of Road Accident Fund CEO Collins Letsoalo on precautionary leave is a long-overdue but necessary step to ensure that the Special Investigating Unit (SIU) can conduct its preliminary investigation without interference or influence, the DA said on Wednesday. The transport department said the decision was in the interest of good governance and a precautionary step to facilitate ongoing investigative processes. 'It does not imply any prejudgment or adverse finding against the CEO.' The DA said Letsoalo's temporary removal from office must facilitate full transparency and accountability, particularly in light of serious allegations concerning the RAF's governance failures, financial mismanagement and possible misconduct. Briefing the standing committee on public accounts (Scopa) last month, the SIU said it had experienced a lack of co-operation from the RAF in its investigation into the affairs of the entity. 'There were instances where the SIU had to resort to opening a criminal case against a RAF executive for failure to adhere to a lawful subpoena issued by the SIU in terms of the SIU Act,' SIU head Any Mothibi said last month. The DA said the ministry of transport's support for the decision to place Letsoalo on leave must be followed by full co-operation with Scopa and law enforcement agencies. 'The precautionary suspension of the CEO is just the beginning. The DA will not rest until justice and good governance are restored at the RAF.'
IOL News
28-05-2025
- Business
- IOL News
Letsoalo's suspension sparks uproar: Reformist CEO taken down amid legal backlash
Sources close to the matter claim the suspension of RAF CEO Collins Letsoalo was a calculated move to pacify a deeply aggrieved group of attorneys In a move that has ignited controversy and speculation, Collins Letsoalo, the CEO of the Road Accident Fund (RAF), has been placed on suspension — a decision that legal experts and insiders say is less about accountability and more about political appeasement. Letsoalo's suspension comes just weeks after a Supreme Court of Appeal ruling cleared him and the RAF board of personal liability in two long-delayed claims. While the court's decision offered legal vindication, the political pressure around his leadership has been mounting, largely from within a legal fraternity that has openly waged war on him since his tenure began. Sources close to the matter claim the suspension was a calculated move to pacify a deeply aggrieved group of attorneys, many of whom also serve as magistrates and judges and wield substantial influence and public funds. These lawyers have seen their lucrative RAF-related revenues dry up under Letsoalo's aggressive anti-corruption and reform agenda. Letsoalo is no stranger to conflict. He publicly branded elements of the legal industry as 'thuggish,' accusing some attorneys of manipulating the claims system for personal enrichment at the expense of road accident victims. One of the most high-profile battles was with Gert Nel Incorporated and the Association for the Protection of Road Accident Victims (APRAV), whom Letsoalo accused of fighting transformation and resisting the Road Accident Benefit Scheme (RABS) Bill — a policy shift that threatens the profit models of many legal firms. 'They never cared about victims,' Letsoalo declared during a media briefing in March. 'They cared about the billions they've made off the pain of others.'
