The Road Accident Fund’s acting chief investment officer, Sefotle Modiba, has been found guilty by the Commission for Conciliation, Mediation and Arbitration (CCMA) for failing to disclose his disciplinary issues at the City of Johannesburg when he interviewed for the powerful RAF position in 2020.
CCMA recommends Modiba’s dismissal
The commission has recommended that Modiba be dismissed from his position.
“I find that an appropriate sanction is that of dismissal, as his misconduct irretrievably broke down the trust-employment relationship,” according to the report by commissioner Maputle Mohlala.
In a hard-hitting arbitration award issued on May 7, it is found that the suspended acting executive Modiba’s silence about his disciplinary woes at the City of Joburg fatally destroyed the trust relationship between him and the multibillion-rand state entity.
“The employee is found guilty of failure to disclose material information to the RAF at his interview on 06 April 2026, and an appropriate sanction in this regard is dismissal,” ruled Mohlala.
The commissioner said Modiba’s conduct amounted to gross dishonesty and left the RAF with no choice but to cut ties with him.
“The charge of failure to disclose material information that could impact employment is a serious offence and breaks down the trust- employment relationship irretrievably,” the ruling stated.
RAF post a strategic role
In May 2020, Modiba joined the RAF as a senior treasury specialist and quickly rose to the position of acting chief investment officer, a strategic role that positioned him near the entity’s financial nerve centre.
However, trouble started when the RAF discovered that before joining the fund, Modiba had been suspended by the City of Johannesburg and was facing misconduct charges, including allegations linked to dishonesty.
According to evidence before the CCMA, Modiba was interviewed by RAF executives in April 2020 and was asked whether there was anything material that could affect his employability.
Instead of revealing the disciplinary cloud hanging over him, Modiba told the panel there was “nothing to disclose”.
Mohlala found this deeply problematic.
“The employee had the duty to disclose the circumstances surrounding his departure at the City of Johannesburg, and he did not,” the commissioner said.
The ruling stressed that even though the disciplinary charges may later have been withdrawn as part of a negotiated separation agreement, Modiba was still obligated to disclose the full picture to RAF.
“What mattered were the factual circumstances that led to the signature of the agreement, not the agreement itself,” Mohlala wrote.
Letsoalo’s testimony slammed
In another explosive part of the ruling, Mohlala took aim at former RAF CEO Collins Letsoalo, who testified in Modiba’s defence.
The commissioner appeared unimpressed with Letsoalo’s attitude toward the serious allegations Modiba faced at the City of Johannesburg.
“It is concerning that a CEO at his level would testify that there was nothing in the charges against the employee,” Mohlala remarked.
The commissioner further said Letsoalo failed the test of a “reasonable employer” and criticised him for appearing unconcerned about allegations involving “billions of rands and gross dishonesty”.
But Modiba scored a significant win on the second charge, relating to statements he made in labour court papers.
Modiba cleared on withdrawal of charges claim
RAF had accused him of falsely claiming that the City of Johannesburg had withdrawn the disciplinary charges before he left the municipality.
However, Mohlala discovered that Modiba genuinely believed the charges had been withdrawn after attorneys exchanged correspondence on a mutual separation agreement before his RAF interview.
“I am satisfied… that the employee would have reasonably harboured the belief and view that the charges against him were agreed to be withdrawn,” the commissioner ruled.
The RAF board placed Modiba on precautionary suspension with full pay in June 2025. Investigations into employment at the City of Johannesburg prompted the suspension, followed by subsequent hearings before Parliament’s Standing Committee on Public Accounts.
- The Road Accident Fund’s acting chief investment officer, Sefotle Modiba, has been found guilty by the Commission for Conciliation, Mediation and Arbitration (CCMA) for failing to disclose his disciplinary issues at the City of Johannesburg when he interviewed for the powerful RAF position in 2020.
- CCMA recommends Modiba’s dismissal The commission has recommended that Modiba be dismissed from his position.
- “I find that an appropriate sanction is that of dismissal, as his misconduct irretrievably broke down the trust-employment relationship,” according to the report by commissioner Maputle Mohlala.
- In a hard-hitting arbitration award issued on May 7, it is found that the suspended acting executive Modiba’s silence about his disciplinary woes at the City of Joburg fatally destroyed the trust relationship between him and the multibillion-rand state entity.
- “The employee is found guilty of failure to disclose material information to the RAF at his interview on 06 April 2026, and an appropriate sanction in this regard is dismissal,” ruled Mohlala.
