The Ministry of Transport will convene a physical meeting with the full Board of the Road Accident Fund (RAF) next week to discuss the precautionary suspension of the fund’s CEO, Collins Letsoalo.
According to media reports, the board suspended Letsoalo for not attending a standing committee on public accounts in May.
However, the board later rescinded this decision, suspending him instead for insubordination.
In the interest of good governance
Sunday World previously reported that 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 May 28.
“It does not imply any prejudgment or adverse finding against the CEO.”
Departmental spokesperson Collen Msibi, the spokesperson for the said at the time: “The CEO will be on special leave until the conclusion of the relevant investigations by the [SIU] 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.”
Acting CEO
To guarantee business continuity, Phathutshedzo Lukhwareni was named acting CEO.
On Friday, the department said: “The meeting will evaluate the prospects of the current board. This to restore good governance and effective administration at the entity, so that it fulfils its primary purpose of compensating road accident victims timeously.”
The department will consider appropriate interventions post this meeting to ensure the stability of the entity, good governance and the fulfilment of its mandate.
“To ensure the speedy and equitable access to the Road Accident Benefit Scheme by thousands of road accident victims, the department intends to finalise the Road Accident Benefit Scheme Bill.
No-fault system
The Bill will introduce a no-fault system to make it easier for road accident victims to access the benefits without costly legal bills.
“The Bill will also introduce standardised benefits and compensation to facilitate more equitable sharing of the benefits amongst claimants,” the department said.
The meeting will be held on Tuesday.
- SAnews.gov.za
