By Lehlohonolo Lehana.
The suspension of the Road Traffic Management Corporation (RTMC) CEO, advocate Makhosini Msibi, has been declared unlawful and set aside.
Msibi was placed on precautionary suspension effective from 1 July 2025 amid a host of serious allegations made by a whistleblower.
Msibi has since launched a high court application to have his suspension reviewed and set aside.
He argued that the decision by the board to suspend him usurped the power of the shareholders committee, asserting that the RTMC CEO is not appointed by the former but by the latter – and that only the shareholders committee can therefore suspend or remove the CEO from his position.
He said some of the allegations that led the board to suspend him were investigated by reputable law firm Lawtons Africa, which found no evidence of wrongdoing on his part.
Msibi said Lawtons Africa only identified certain structural weaknesses in the procurement area within the RTMC, which required strengthening.
He claimed subsequent allegations by the whistleblowers were recently investigated by the AG, during the 2024/25 audit, with the RTMC receiving a clean audit.
In his ruling, Judge Jan Swanepoel, said the board did not have the authority to suspend Msibi and further ruled that the adoption of the board charter was also unlawful.
Swanepoel also struck down the board charter saying the board had no authority to adopt it. However, that ruling is suspended for 90 days to allow the process to be fixed.
The Whistleblower allegations also led to RTMC chief financial officer Liana Moolman also being placed on precautionary suspension.
The allegations against Moolman relate to her alleged failure to manage the RTMC’s budget, with the corporation apparently reporting a deficit in the year, which has forced the RTMC to implement severe cost-containment measures that are negatively affecting operations.
The agency’s financial statements for 2024/25 have not yet been published.
Serious allegations made in several emails from a whistleblower to various entities – including the Department of Transport, parliament’s Standing Committee on Public Accounts (Scopa) chair Songezo Zibi, and The Presidency relate to financial misconduct, irregular procurement, abuse of authority and governance failures under Msibi’s leadership.
Among the issues raised is alleged acknowledgement by Msibi of a financial crisis at the RTMC in a circular issued to all staff on 31 May 2025, stating that the corporation “is in a dire financial state, facing severe liquidity constraints and an unsustainable fiscal position”.
A letter allegedly issued by the Auditor-General (AG) refers to R33.48 million in overspending against the RTMC’s total adjusted budget, with the whistleblower claiming Msibi failed “to account for the root causes of this crisis, which are directly linked to a series of financial decisions he personally took – often against the explicit recommendations of the chief financial officer (CFO)”.