By Lehlohonolo Lehana.
Road Accident Fund (RAF) board has placed its CEO Collins Letsoalo on special leave pending the Special Investigation Unit (SIU) investigation into controversial R79 million lease deal.
Letsoalo has been placed on leave with full pay until the investigation is finalised. Fullview understands his contract is coming to an end in August 2025.
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 favour Mowana Properties, a losing bidder that ultimately secured the five-year contract.
A preliminary report by the Special Investigating Unit (SIU) found that Letsoalo interfered with the procurement process by overturning a bid committee’s recommendation to favour Mowana Properties, a losing bidder linked to the Government Employees Pension Fund (GEPF), which ultimately secured the lease agreement.
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.
The SIU said this lease formed part of a wider pattern of financial mismanagement, including more than R340 million paid out in duplicate to law firms, with only a fraction recovered.
The full SIU report is still pending.
“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes,” reads a statement issued on Wednesday.
“It does not imply any prejudgment or adverse finding against the CEO.”
The RAF board informed Mkhuleko Hlengwa, the Deputy Minister of Transport, of its decision following the board’s special meeting on Tuesday.
To guarantee business continuity, Phathutshedzo Lukhwareni has been named acting CEO.
It’s the latest twist in a string of controversies that have dogged his tenure, from a failed attorney panel shake-up that cost taxpayers millions, to questions about his CV.
Letsoalo holds various qualifications including a Bachelor of Commerce in Economics, Advanced Diploma in Central Banking, a Diploma in Treasury Management and Trade Finance, a Postgraduate Diploma in Trade Finance, as well a Postgraduate Diploma in Management.