RAF boss Letsoalo booted on special leave amid R79m lease scandal

Collins

Cape Town – Road Accident Fund (RAF) CEO Collins Letsoalo has been placed on special leave by the board as a precautionary measure amid ongoing investigations by the Special Investigating Unit.

According to IOL, Letsoalo, who testified before the Standing Committee on Public Accounts (Scopa) on Wednesday, has been suspended with full pay due to allegations of financial mismanagement and corruption.

A Special Investigating Unit (SIU) report revealed he interfered in a R79 million lease deal, favouring Mowana Properties despite it being a losing bidder, the report said.

Further allegations involve irregular extensions of a R19 million cleaning and security contract, a R313 million project awarded unlawfully, and inflated costs in a furniture tender. His contract ends in August.

The Transport Department clarified that this is not a disciplinary action or an indication of guilt, Times Live reported. 

“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 department said.

“The board has indicated this is a precautionary measure and does not constitute disciplinary action or presumption of guilt.

“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes. It does not imply any prejudgment or adverse finding against the CEO.”

Senior RAF manager Phathutshedzo Lukhwareni has been appointed as acting CEO to maintain operational continuity.

Article written by