Letsoalo leave meant to safeguard SIU probe - RAF board

Letsoalo leave meant to safeguard SIU probe - RAF board

The Road Accident Fund (RAF) board says serious governance concerns and potential conflict of interest prompted its decision to place CEO Collins Letsoalo on special leave.

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RAF board chairperson Zanele Lorraine Francois told Parliament on Wednesday that the move was necessary to protect the organisation’s credibility and ensure that multiple investigations, including one by the Special Investigating Unit (SIU), could proceed without obstruction.


 


"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,” said Francois.


 


"The board also needs to show its support for parliamentary oversight structures.”


 


Francois said the board was particularly alarmed by allegations that Letsoalo may have acted on instructions from external parties and initiated personal litigation on issues directly related to his responsibilities as CEO.


 


"One of the major concerns is that a CEO cannot take instructions from external parties or initiate personal litigation on matters directly affecting his role,” she told MPs.


 


The SIU is investigating the RAF following whistleblower claims that Letsoalo overturned internal bid committee decisions to award a R79 million lease contract to Mowana Properties.


 


 The SIU has also flagged other irregularities, including over R140 million in payments made without board approval and suspicions around an executive using two ID numbers.


 


Francois confirmed that the board had also received reports of possible interference by RAF executives in the SIU investigation, prompting swift action to distance Letsoalo from operations while the probe continues.


 


"There are serious allegations, including possible interference by RAF executives and staff in the SIU’s investigation.


 


“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,” Francois explained.


 


She emphasised that Letsoalo has not been found guilty of wrongdoing and that the special leave is a precautionary, not disciplinary, step.


 


Deputy Minister of Transport Mkhuleko Hlengwa backed the board’s decision, saying it was taken purely in the interest of good governance and to protect the integrity of the ongoing investigations.


 


"The board has indicated that this is a precautionary measure and does not constitute disciplinary action or a presumption of guilt,” said Hlengwa.


 


Phathutshedzo Lukhwareni has been appointed acting CEO to maintain continuity during Letsoalo’s absence.


 


Francois said the CEO’s leave will be reviewed monthly, and that meetings with the SIU are scheduled for June.


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