The Economic Freedom Fighters (EFF) has come out strongly in defence of Road
Accident Fund (RAF) Chief Executive Officer, Collins Letsoalo who has been placed on ‘special leave’.
The RAF Board told parliament’s Standing Committee on Public Accounts that Letsoalo’s suspension was a “precautionary” measure pending an investigation into allegations of corruption. The EFF said the suspension amounted to a witch-hunt as there’s no real case against Letsoalo.
“This is merely a witch hunt designed to tarnish Letsoalo’s reputation for his stellar work in uncovering the rot within the RAF,” said the EFF in a statement.
“This action taken without procedural fairness, reveals the orchestrated attempt to create a public perception of wrongdoing where none has been proven,” said the EFF.
Letsoalo has been in a battle against law firms that have accused him of putting them out of business by providing for victims of road crashes to claim directly from the fund and not through lawyers.
Lawyers currently take 25 percent of the compensation and claim other fees from the fund for services rendered to claimants including the most mundane of tasks.
The suspension is based on media reports that are themselves reliant on a yet to be released report of the Special Investigation Unit.
“Even more disturbing is the revelation that the preliminary report on these allegations of corruption presented by the Special Investigating Unit (SIU) contains mere allegations that are untested and unproven. The Department of Transport itself has admitted that the SIU has not briefed them on the contents of this report, nor has the RAF been afforded the courtesy or the right to respond to the claims contained within it. This clear disregard for due process reinforces that Letsoalo is being subjected to trial by innuendo, not by evidence,” the EFF said.
Letsoalo who has previously been dismissed from State Owned Enterprises and reinstated by the courts is widely expected to challenge his suspension.
Some of the allegations include that he has vested interest in a leasing deal entered into by the RAF, an allegation he dismissed questioning how he could get kickbacks from what is essentially a transaction between two state institutions ( the RAF and the Government Employee Pension Fund Scheme, the landlord in this instance.
“They are talking of an SIU report, by the way it was us who approached the SIU and we are yet to be furnished with a report. I must also state that in their nature, SIU reports are for the eyes of the president and can be shared with affected institutions after being processed by him,” he said during a recent media briefing.
The party said it will raise Letsoalo’s suspension in the portfolio committee on transport where it expects the transport ministry to account.
“We will also call for the matter to be urgently tabled before the Portfolio Committee on Transport, where the Minister and the RAF Board must account for this unlawful and vindictive action; and to respond to the revelations of corruption that Letsoalo has uncovered that is occurring under their watch. The EFF demands that all allegations be subjected to fair and transparent processes, and that the rights of the accused be respected,” said the EFF.
The RAF was near collapse hopping from one bailout to another Letsoalo took over the reigns. Under his leadership, the institution has received successive clean audits and has cash reserves of billions of rands.
SCOPA has instructed the board to provide comprehensive reasons in writing to the committee within a week.
“SCOPA has resolved to recall RAF to return with detailed explanations regarding the special leave of the CEO, a breakdown of spending on cases with a list of law firms, attorney and council fees,” said SCOPA chairperson.