The Road Accident Fund (RAF) has found itself in tumultuous waters as its Chief Executive Officer, Collins Letsoalo, is placed on special leave under the shadow of severe corruption allegations. This development comes during an ongoing investigation into a contentious R79 million lease deal concerning the RAF’s Johannesburg offices.
Sources familiar with the situation have revealed that Letsoalo’s suspension stems from claims that he interfered in crucial procurement processes. Reports indicate that he overturned a decision made by the bid evaluation committee, which had initially rejected a proposal from Mowana Properties—a property management firm. Following Letsoalo’s alleged intervention, Mowana Properties succeeded in securing the sought-after lease contract, raising critical questions about procedural integrity and potential favouritism.
But the allegations don’t end there. Letsoalo is also embroiled in serious accusations pertaining to contract mismanagement. He reportedly approved the irregular extension of a cleaning and security contract valued at R19 million, renewed over a span of six years without adhering to requisite protocols. Further complicating matters, it has come to light that a separate contract worth R313 million, aimed at addressing the RAF’s operational backlog, was allegedly awarded unlawfully, at excessively inflated costs. These cumulative allegations have opened up the fund to intensified scrutiny.
To delve deeper into these allegations, the Special Investigating Unit (SIU) has initiated a formal investigation. The SIU’s inquiry will focus on whether the appropriate procurement processes were followed and if there was an abuse of authority regarding the awarding and extending of these contracts.
While the investigation unfolds, Letsoalo will remain on special leave, allowing the RAF the opportunity to operate with minimal disruption. In his absence, the organisation has appointed Phathutshdzu Lukhwareni as acting CEO. Lukhwareni, known for his administrative expertise, is expected to lead the RAF through this challenging period.
This latest scandal is another chapter in the ongoing saga of the RAF, which has grappled with significant financial and administrative hurdles in recent years. Amid these challenges, public and political pressure mounts, urging the fund to adopt a more transparent and accountable leadership approach.
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