Road Accident Fund CEO Placed on Special Leave Amid Corruption Probe – Latest Updates (May 29, 2025)
Date: May 29, 2025
Source: IOL News
The Road Accident Fund (RAF) is facing renewed scrutiny after CEO Collins Letsoalo was placed on special leave. This action follows the intensification of an SIU (Special Investigating Unit) probe into corruption and maladministration at the state-owned fund responsible for compensating South Africans injured in road accidents.
Key Developments in the RAF Investigation
- CEO on Special Leave:
The RAF board placed Collins Letsoalo on special leave to allow for an unimpeded investigation into serious procurement irregularities—most notably a R79 million lease agreement for the Johannesburg office, allegedly awarded in breach of standard procedures. - Allegations of Executive Interference:
Reports indicate Letsoalo overturned the RAF bid adjudication committee’s decision and awarded the lease to Mowana Properties, triggering alarm within the SIU. Executives and internal staff are also accused of interfering with the ongoing probe. - Other Suspect Contracts:
Additional contracts are under investigation, including:- A R19 million cleaning and security contract
- A R313 million backlog project flagged for inflated costs
- Governance Measures:
The RAF emphasized that the CEO’s special leave is a precautionary step, not a disciplinary action. Oversight will continue monthly, with Phathutshdzu Lukhwareni stepping in as acting CEO.
What This Means for the Road Accident Fund
This scandal brings into question the RAF’s financial governance, procurement practices, and executive integrity. The Road Accident Fund is a vital institution tasked with distributing billions in compensation to accident victims. Any breach of public trust may have far-reaching consequences, especially for those dependent on timely payouts.
Public and Stakeholder Reaction
The public, civil society groups, and claimants are demanding transparency and accountability, fearing that internal corruption could delay claims or misappropriate funds meant for accident victims. The Department of Transport has backed the RAF board’s decision and pledged full support for the investigation.
What Happens Next?
The special leave will remain in place until the SIU investigation concludes or the RAF board reviews and reverses the decision. The RAF has committed to full cooperation, and further updates are expected in the weeks ahead.
Stay Informed
The situation at the Road Accident Fund is rapidly evolving. We will continue to monitor the SIU’s findings, any changes in RAF leadership, and potential legal proceedings.
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