By Akani Nkuna
The CEO of the Road Accident Fund Collins Letsoalo has been placed on temporary paid suspension following his alleged involvement in a controversial R79 million office lease deal.
The suspension follows findings by the Special Investigating Unit (SIU) which link him to possible misconduct.
The move comes as part of broader efforts to ensure transparency and accountability within RAF while investigations into the matter continue.
Letsoalo was informed of his suspension on Wednesday morning during his appearance before the Standing Committee on Public Accounts (SCOPA).
This follows a preliminary report by the SIU, which found that Letsoalo allegedly interfered in a procurement process by overturning a bid committee’s decision to award a lease to Mowana Properties, a losing bidder linked to the Government Employees Pension Fund (GEPF).
Furthermore, the SIU report also flags broader concerns, including irregularities in other RAF contracts.
These include the unlawful extension of a R19 million cleaning and security contract over six years, the improper awarding of a R313 million backlog project and inflated costs in an office furniture tender.
The findings have raised serious questions about governance and procurement practices within RAF.
According to the Department of Transport, the suspension is a precautionary measure and does not amount to disciplinary action or any indication of guilt.
The department said that the decision was made purely in the interest of good governance and to ensure that ongoing investigations could proceed without interference.
It said the move was aimed at safeguarding the integrity of the process.
“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes,” department spokesperson Collen Msibi said in a statement.
Just last month during a media briefing at the RAF headquarters in Pretoria, Letsoalo condemned widespread fraud within the organisation.
He pointed to inflated and fraudulent claims by certain law firms as a major drain on the funds’ resources.
Letsoalo has strongly denied any wrongdoing in the past in relation to the SIU’s probe and dismissed the investigation as a “fishing expedition”, insisting that the controversial lease deal was both transparent and justified by safety concerns and cost-saving measures.
He has said the allegation are part of a witch hunt against his efforts to clamp down on corruption within RAF.
“Turning around the RAF is not for sassies… because that you are going to do, as long it does not benefit lawyers, medical schemes, actuaries, and doctors then you are not going to be liked,” Letsoalo said during the press conference.
According to Letsoalo, his interventions helped prevent irregular spending amounting to R36 billion, which he believes has fuelled the campaign against him.
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