Collins Letsoalo, the CEO of the Road Accident Fund (RAF), has been placed on special leave with immediate effect while the Special Investigating Unit (SIU) finds out how he was involved in the R79-million lease tender scandal.
The decision was made by the RAF board in accordance with the Public Finance Management Act, 1 of 1999; the Road Accident Fund Act, 56 of 1996; and in the interest of good governance.
“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes,” reads a statement issued by the Department of Transport on Wednesday.
“It does not imply any prejudgment or adverse finding against the CEO.”
The RAF board informed Mkhuleko Hlengwa, the Deputy Minister of Transport, of its decision following the board’s special meeting on Tuesday.
Lukhwareni appointed acting CEO
Collen Msibi, the spokesperson for the department, said: “The CEO will be on special leave until the conclusion of the relevant investigations by the Special Investigating Unit or such earlier date as the board may determine.
“The board has indicated that this is a precautionary measure and does not constitute disciplinary action or presumption of guilt.”
To guarantee business continuity, Phathutshedzo Lukhwareni has been named acting CEO.
According to a preliminary SIU report, Letsoalo has been connected to possible wrongdoing regarding a lease for the fund’s regional offices in Johannesburg.
Letsoalo allegedly tampered with supply chain procedures in the selection of Mowana Properties, according to the SIU’s findings.
Letsoalo opposed a nine-year lease with a service provider that the bid evaluation committee had suggested, the SIU said.
Letsoalo blames dishonest lawyers
He has already refuted claims in this regard and feels that they are being used to discredit him in the run-up to his August 2025 term.
The embattled Letsoalo called for a commission of inquiry on court matters involving the multibillion-rand organisation in a candid interview with Sunday World Engage in April
Letsoalo feels that his greatest transgression was dismissing a group of allegedly dishonest lawyers who were earning billions of rands by representing the organisation in court prior to his joining the RAF.
He asserted that his determination to eliminate that panel rendered him incomparable in the legal community, attributing his attacks to certain lawyers and even judges.
