The Road Accident Fund (RAF) faces mounting uncertainty following the suspension of its CEO, Collins Letsoalo, amid a Special Investigating Unit (SIU) probe into a controversial R79 million office lease deal in Johannesburg.
Letsoalo was placed on special leave with immediate effect, raising questions about governance and financial management at the embattled state entity.
Letsoalo Breaks Silence
In an exclusive interview with #Newzroom405’s Xoli Mngambi, Letsoalo addressed his suspension and the allegations against him. He maintains his innocence, claiming that certain parties are attempting to portray him as “corrupt and incompetent.”
Why Was the RAF CEO Suspended?
The RAF Board suspended Letsoalo on 27 May 2025 following a preliminary SIU report implicating him in the Johannesburg lease scandal. The Department of Transport clarified that this is a precautionary measure, not a presumption of guilt, to allow investigations to proceed unhindered.
Key Concerns:
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R79m Office Lease Deal: Allegations of irregularities in procurement.
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R5.3m Vehicle Leaseback Scam: Service provider accused of failing to deliver 56 vehicles.
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R19m Cleaning & Security Contract: Irregularly extended for six years.
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R313m “Siyenza” Backlog Project: Unlawfully awarded to address 37,734 pending claims.
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R40m Office Furniture Tender: Allegedly amended illegally, inflating costs.
Acting CEO Appointed
Phathutshedzo Lukhwareni has been named Acting CEO to ensure operational continuity while Letsoalo remains on leave. The board’s decision aligns with the Road Accident Fund Act and Public Finance Management Act, emphasizing good governance.
RAF’s Financial Crisis
The fund is in dire financial straits, with R300 billion in liabilities and fuel levy revenues struggling to cover debts. The SIU’s findings could further destabilize the entity, which is already under scrutiny for multiple questionable contracts.
What’s Next?
Deputy Transport Minister Mkhuleko Hlengwa has scheduled a board meeting for 09 June 2025 to assess the situation. Letsoalo’s contract expires in August 2025, adding urgency to the investigations.
As the SIU probe unfolds, the RAF’s future remains uncertain. Letsoalo’s suspension highlights deeper governance issues, with taxpayers demanding accountability. Will the investigation restore public trust, or will the fund’s instability worsen?
Stay updated as this story develops
