RAF CEO Collins Letsoalo placed on special leave

The decision was confirmed by RAF board chairperson, Zanele Lorraine Francois, during a briefing to Parliament’s Standing Committee on Public Accounts (Scopa) on Wednesday.

Letsoalo is facing serious allegations of financial mismanagement and corruption, including a controversial R79 million lease agreement for office space in Johannesburg.

This follows a whistleblower complaint to the Public Protector, accusing Letsoalo of overturning bid committee decisions to favour property management company Mowana Properties, which was later awarded the contract.

The Special Investigating Unit (SIU) is probing the RAF for alleged corruption and maladministration.

 The SIU previously told Parliament that the extension of the RAF Corporate Panel of Attorneys was irregular, and that more than R140 million had been paid out without board approval.

In another revelation, it was discovered that an RAF executive allegedly received payments from attorneys and may have used two different ID numbers.

Francois said the board had placed Letsoalo on special leave due to various factors.

"The board decided to summarise the main reason for Mr Letsoalo’s special leave, but there are other contributing factors as well,” 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.”

Francois noted that the board was concerned about the CEO’s alleged external influence and personal litigation on matters affecting his role.

"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 added.

Francois stressed that Letsoalo has not been found guilty of any wrongdoing and that the board will review his special leave monthly.

She also confirmed that the board is in communication with the SIU and will meet with the unit in June as part of the ongoing investigation.

"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 said.

Deputy Minister of Transport Mkhuleko Hlengwa, who is also the chair of Scopa, confirmed that Letsoalo will remain on special leave until the conclusion of the SIU investigations or until the board determines otherwise.

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

"The decision was taken solely in the interest of good governance and to facilitate the ongoing investigations. It does not imply any prejudgment or adverse finding against the CEO.”

Phathutshedzo Lukhwareni has been appointed as acting CEO to ensure operational continuity.

Hlengwa added that the board had exercised its fiduciary duties in line with the Road Accident Fund Act, the Public Finance Management Act, and the principles of good governance outlined in King IV.

ALSO READ