By Lehlohonolo Lehana.
A preliminary report by the Special Investigating Unit (SIU) has implicated Road Accident Fund (RAF) CEO Collins Letsoalo in alleged wrongdoing involving a R79 million lease deal for the fund’s Johannesburg offices.
The investigation, initiated under a 2021 presidential proclamation, follows a whistleblower’s complaint to the Public Protector, accusing Letsoalo of overturning bid committee decisions to favor Mowana Properties, a losing bidder that ultimately secured the five-year contract.
Key Findings from the SIU Report
- Whistleblower’s Claims Confirmed: The SIU’s preliminary findings support allegations of tender manipulation in leasing, cleaning, security, and legal services.
- Letsoalo’s Defense: The RAF CEO claims Mowana Properties—a GEPF portfolio company—was chosen because rental payments would “return to the state.”
- Office Space Struggles: Letsoalo says the RAF had failed to secure new premises for five years before his 2019 appointment.
With mounting evidence of financial mismanagement, pressure builds on Letsoalo as the SIU finalizes its report.
Addressing the media in Pretoria on Monday, Letsoalo said due diligence was followed in the lease agreement.
“They must investigate without fear, favour, or prejudice. I sleep nicely at night, even if police pass by with a siren on, I sleep nicely. I know there’s nothing”
“No one talks about the R36 billion that we have saved this organisation over the last five years. I know what this is about, so it’s about me.”
Letsoalo was appointed to the position four years ago.
“My contract is ending in August, and [already] there are people who are fixing certain narratives and attacking me and my colleagues. This is about me because my contract is coming to an end. I am not going anywhere,” said Letsoalo.
He described how RAF obtained the offices, stating that it requested help from Transnet and the Passenger Rail Agency of South Africa to purchase an office block but was not able to get this help.
The fund then made contact with the Public Investment Corporation (PIC), he said.
“The PIC said we should go to Mowana Properties because it manages a property portfolio owned by the Government Employees Pension Fund. Mowana gave us three buildings to assess,” he said.
According to Letsoalo, RAF applied to the Treasury to depart from standard procurement procedures since, between 2013 and 2018, no acceptable tender was received for the appropriate office space.
He said the tender was first advertised in 2013.
Letsoalo went on to say that despite seven advertisements for the tender between 2013 and 2018, no acceptable bid was received. Accordingly, he said, it justified the RAF’s departure from standard procurement procedures.
“I do not know who Mowana is; they are not friends of mine. The idea that I am a rogue CEO who is running amok will never stand the test of time. There is evidence to suggest otherwise.
Watch Live in the video below:
Video Courtesy of RAF.