A week before he was placed on special leave, Road Accident Fund (RAF) chief executive Collins Letsoalo lawyered up and refused to appear before Parliament’s Standing Committee on Public Accounts (SCOPA). In a letter sent through his attorneys, Letsoalo pushed back against the committee’s call for RAF executives to explain their handling of a Special Investigating Unit (SIU) probe into the Fund.
SCOPA chairperson Songezo Zibi (pictured) dropped this revelation during Wednesday’s meeting, shortly after Deputy Minister of Transport Mkhuleko Hlengwa confirmed that the RAF board had decided to place Letsoalo on special leave the previous evening.
The move comes amid growing scrutiny over a leaked SIU report that allegedly implicates Letsoalo in the controversial R79-million lease of RAF’s Johannesburg regional office at 10 Junction Avenue, Parktown.
Read: SIU denies leaking report implicating RAF CEO in R79m lease deal
Letsoalo denied the allegations during a press briefing on 14 April. Despite this, the RAF board moved to sideline him – at least temporarily – pending further investigation.
Hlengwa told SCOPA that the board’s decision was a precautionary step taken in the interest of good governance, not a disciplinary action. He said the special leave will remain in effect until the SIU completes its investigation, or an earlier date as determined by the board.
To ensure continuity, the RAF has appointed Phathutshedzo Lukhwareni as acting CEO.
Hlengwa also noted that Letsoalo’s term is set to expire in August, and the board has been advised to advertise the position. If Letsoalo wishes to continue, he will have to re-apply. He underscored that the ministry “communicated this outlook prior to these developments well in advance for the purposes of due planning and governance and stability”.
Meanwhile, SCOPA has confirmed that it has received the SIU’s preliminary report – but neither the Ministry of Transport nor the RAF’s board and executives have seen it yet.
The RAF board said it has reached out to the SIU, which has agreed to schedule a meeting in June to discuss the findings of the preliminary report, giving the board the right to reply.
RAF board cites conflict, SIU probe in decision to sideline CEO
Lorraine Francois, chairperson of the RAF board, told the committee the board still needed to meet with the deputy minister to brief him fully on the reasons behind placing Letsoalo on special leave. She said the main issue was a serious potential conflict arising from the current SIU investigation and Letsoalo’s role as the RAF’s operational head.
“Because, before we came in here, there was a dispute between himself and the board in terms of attendance here after, chair, the SIU matters have been cleared,” Francois said.
She explained that the CEO had taken the decision to instruct lawyers to represent him in relation to the SIU matters. “We saw that as a conflict, because when we’re asking questions, ‘are you attending?’. And he said, no, he will have to check with his lawyers.”
Francois added, “We had a problem that we have a CEO who was appointed in the organisation but is taking instructions from two different principals, and then the priorities of the organisation are basically compromised.”
She declined to go into other specifics, requesting to share them in writing with the committee.
She did add, however, that the board has received allegations from the Ministry of Transport about possible interference by RAF executives and staff relating to the SIU investigation.
“The board takes those things seriously, so we thought that let’s distance him from the process and allow the investigation process to be finalised.”
To clarify Francois’s what he called “Latin”, Zibi asked whether it would be fair to summarise that Letsoalo was placed on special leave because “there was a dispute between the board and the chief executive with regards to the content and substance of the presentation to this committee which relates to accountability to Parliament. The second one relating to which any of you, the Road Accident Fund, institutionally, should continue to co-operate and assist the Special Investigating Unit.”
Francois agreed but added, “Chair, yes, but that’s not all. There are other fundamental issues behind it. That’s why I don’t want to get into detail, because it’s now kind of a legal matter.”
‘Toothless’ special leave for CEO
Zibi took aim at the RAF board for placing Letsoalo on special leave without clearly defined conditions – despite the backdrop of a sensitive SIU probe.
“And here’s my point,” Zibi said, “if you have matters of concern which relate to the conducting of the investigation without interference, a letter that relates to those matters would then have conditions of the special leave. Those conditions would be hand in your laptop, you may not interfere with the investigation, don’t contact any employees, don’t come into the premises, etc, etc.”
He added pointedly: “But we now have this situation where the chief executive is on special leave. We’re not certain why. It might relate to the investigation, but actually, if he wanted to, he could come back and hang out in the canteen during the day and give people cold stares.”
Hlengwa stepped in, requesting space to engage directly with the RAF board. “And we will provide a report to the committee on these matters,” he said.
Hlengwa committed to briefing the committee within a week and said a special engagement with the board would be arranged.
The damage this guy has caused the RAF, will take decade to fix. You only talking about the chaos he has been creating to hide the real game.
It is very touching because majority of bread winners were unjustifiably kicked out of system without any reasonable explanation. The man is the law to himself. He would instruct managers and executives in all provincial offices to suspend employees in order to save his face. He does not respect the taxpayers. He run the organization not through the board of directors but through costly litigations.
People are waiting for payment but he ignores court orders more especially default judgement this is painful for victims.
He was CEO & COO( Chief Claims Handler) at a same time. Parliament & board should have smelled coffee when he do away with panel of attorneys & encourage public to claim without lawyers whilst on other hand he requires all medico report to be submitted in full. Where will public get almost 60k to get medico in order to lodge claims.
My husband also waiting for payment default court order settlement but nothing when we call RAF they say he is not on their system they don’t anything to solve their system while victims are suffering…
He doesn’t want to pay victims more especially default judgement my husband I waiting for payment it was a default judgement but when we phone RAF they say he is not on the system and cost him the stress ,blood pressure and sugar diabetic.
Yooo its been 4years waiting for loss of support. Everything have been done .
We citizens of the RSA curse that pure evidence is collected against people like Letsoalo whom we had hope on to deliver in the context of his qualifications. Our RAF claims of which until today people are suffering because of selfishness within people like him who earn salaries, bulk of cash and instead he’s causing fraud and corruption frequently changing lawyers representatives. I hope they terminate their percentage shares in regard to RAF claims.
Pride comes before the fall.
Collins Letsoalo’s problem is his ego.
He had a perfect opportunity to turn things around at the RAF. But unfortunately he decided to ignore the RAF Act and the RAF mandate, and came up with his own regulations. That was his downfall. ARROGANCE !!!
Good that Letsoalo is suspended. He has been the law unto himself, and his hatred for Legal Practitioners is a clear demonstration of his hidden intentions about the RAF. His contract will soon expire, and he must never be reappointed.
Overwhelming respect for the Chair of SCOPA, not scared to speak up and act accordingly. He is clearly not scared of Letsoalo when so many others are seemingly scared, intimidated or influenced by him! Thank you Songezo Zibi for giving the South African tax payer hope that someone is doing something about the unscrupulous wasteful expenditure of taxpayer money! One can just hope and pray that his momentum will deliver actual changes before his time with SCOPA comes to an end, as our current DM was evenly outspoken and aggressively concerned when he was the chairperson, but considerably less aggressive and motionless when he had the opportunity to implement changes when he became deputy minister and were put in the position to act on his own comments and concerns. May DM Hlengwa embrace this opportunity to show us what we hoped he would offer.. Leadership and courage!
A win from the corrupt whites racist lawyers who have been milking RAF for ages. GNU that represents business people and white interests are using government resources to chase black managers. We the people one day shall deal with this self elected heartless so called government
Racists NGOs and corrupt white lawyers have won. We THE people will deal with this unelected government very soon. Big up Lestoalo for standing against these vultures.
This self elected government people their days are numbered
Dear Mr Zibi Thank you for what you and SCOPA members are doing. I have huge respect for you. Thank you for your leadership. Thank you for all your efforts and strong attitude regarding RAF CEO, Collins. Yes, how Collins was ever appointed as CEO with a terrible historical track record, Prasa and no vetting process is redicilious. CADER APPOINTMENT from the shelf. He was appointed by his big ANC youth leque friend who was Transport Minister at that time, Fikile. Collins has now respect for anyone, Board members, Ministers, DM, Judges, SCOPA, CCMA, outcome of displanary hearings, expertise of employees and also Court Orders. It is sad that SCOPA previous Chairperson now the DM occasionally still protect Collins. DM attitude is disappointed and unacceptable. Collins don’t care about any one. Employees are taken anti depresant medication because stress caused by Collins. He terminated retired employees medical benefits and lie bluntly to parlement. He just continue to destroy peoples life’s. Collins should be dismiss and legal actions should be implemented against him for millions of wasted cost. Let’s hope that no one, SIU included don’t protect Collins.