The Road Accident Fund (RAF has announced that its Chief Executive Officer, Collins Letsoalo, has been placed on special leave. The RAF CEO's special leave decision by the RAF board comes as the Special Investigating Unit (SIU) continues its probe into multimillion-rand contracts and tenders. These investigations focus on financial dealings at the embattled fund.
A Precautionary Measure during SIU Investigation
Transport Department spokesperson Collen Msibi confirmed that the board convened a special meeting on Tuesday. They aimed to address the ongoing investigation during this meeting. The move to place the RAF CEO on leave is described as a "precautionary measure". It does not constitute disciplinary action or a presumption of guilt.
R79 Million Lease Agreement Under Scrutiny
Central to the SIU's investigation is a R79 million lease agreement for a Johannesburg building with Mowana Properties. Reports indicate that Letsoalo, as RAF CEO, approved this substantial contract. This approval was made despite a recommendation against it from the bid evaluation committee.
Mowana Properties manages a property portfolio owned by the Government Employees Pension Fund. The lease was for the relocation of the RAF's Johannesburg regional office.
RAF Ceo Denies Wrongdoing, Pledges Cooperation
Collins Letsoalo has consistently denied any allegations of corruption. He asserts that the RAF followed all legal requirements in the R79 million lease. He has publicly committed to providing the SIU with access to his bank statements to demonstrate his innocence. This emphasises his role as RAF CEO.
He acknowledged the SIU's request for bank statements from RAF management, including himself, stating his willingness to comply. However, he noted a potential need for legal advice to ensure data security.
Letsoalo has also suggested that the allegations against him stem from a disgruntled former employee. This employee was dismissed after facing sexual harassment charges. He further contended that the RAF had obtained approval from the National Treasury for the lease. Furthermore, the Auditor-General did not flag the contract as irregular.
Acting CEO Appointed as Investigation Continues
In Letsoalo's absence, Phathutshedzo Lukhwareni has been appointed as acting CEO of the Road Accident Fund. Letsoalo's current term as RAF CEO is set to end in August.
The decision to place Letsoalo on leave comes amid claims that the SIU was encountering difficulties. These difficulties allegedly arose in its investigation while Letsoalo remained in his position. Letsoalo has firmly denied this claim.