The Chief Executive Officer of the Road Accident Fund (RAF) Collins Letsoalo has been placed on special leave by the RAF Board.
The suspension is over an ongoing investigation into claims of financial mismanagement at the entity.
This after a preliminary report by the Special Investigation Unit (SIU) revealed that Letsoalo interfered in the awarding of a R79m lease tender deal for the entities offices in Johannesburg.
Letsoalo’s suspension was announced by the Deputy Minister of Transport, Mkhuleko Hlengwa in parliament today, when the RAF Board appeared before the Standing Committee on Public Accounts (SCOPA).
“I was advised by the Board of RAF that at a meeting held on 27th May, the board had resolved in their exercise of its fiduciary responsibilities and duties, in terms of the RAF Act and PFMA, and King IV, to place on special leave with full pay and benefits effective immediately, the CEO of the RAF.
The board further advises that this is a precautionary measure and doesn’t constitute disciplinary action.
This decision is made in accordance with the board’s responsibility to manage and control the fund, as provided for in section 10 of RAF Act and the accounting authority for the fund in terms of section 49 of the PFMA,” said Hlengwa.
Furthermore, Hlengwa said the decision was taken solely in the interests of good governance, and not to cast any aspersions on Letsoalo.
“This is a precautionary step to facilitate ongoing investigative processes, it does not imply any prejudgment or adverse findings against the CEO.
“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,” explained Hlengwa.
Hlengwa highlighted that the board will review the situation monthly and communicate any updates.
The deputy minister said the department supports the board decision.
“As the shareholder, the ministry, this is a decision we support that the board has taken. We believe that it is in the collective interest of their investigation, particularly in its final stages,” remarked Hlengwa.
Phathutshedzo Lukhwareni has been appointed acting CEO. Letsoalo’s contract with RAF is expiring in August 2025.
