THE Deputy Minister of Transport Mkhuleko Hlengwa, as the delegated shareholder representative, was today, Wednesday 28 May 2025, informed by the RAF Board that it has placed CEO Letsoalo “on special leave with immediate effect”.
Advocate Letsoalo, who appeared before the Standing Committee on Public Accounts (Scopa) this morning, was suspended with full pay.
He has been implicated in several allegations of financial mismanagement and corruption, primarily centred around a controversial R79 million lease deal for the offices in Johannesburg.
The RAF faces a dire situation, with revenue derived from the fuel levy barely able to meet the entity’s mounting debts and liabilities of more than R300 billion.
“The CEO will be on special leave until the conclusion of the relevant investigations by the Special Investigations Unit (SIU), or such earlier date as the Board may determine,” the Department of Transport said.
“The board has indicated that this is a precautionary measure and does not constitute disciplinary action or presumption of guilt,” the department said.
“The decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes.
“It does not imply any prejudgment or adverse finding against the CEO.”
Letsoalo, whose contract expires in August 2025, is on record as denying any wrongdoing in the matter and claims some people were trying to portray him as corrupt and incompetent.
“In making this decision, it must be noted that the board exercised its fiduciary duties in terms of the Road Accident Fund Act, 56 of 1996, the Public Finance Management Act, 1 of 1999, and in alignment with the principles of good governance as set out in King IV,” said the department.
“The deputy minister has directed that this matter be placed on the agenda for the board meeting he has called for 09 June 2025.”
According to the Sunday Times, other suspicious RAF contracts under probe include:
- R5.3 million Vehicle Leaseback Scam: Service provider accused of non-delivery on 56 vehicles
- R19 million Cleaning & Security Contract: Irregularly extended over six years
- R313 million “Siyenza” Backlog Project: Unlawfully awarded to tackle 37 734 pending claims
- R40m Office Furniture Tender: Allegedly amended illegally, inflating costs from R36 million
In 2017, the Passenger Rail Agency of South Africa (Prasa) fired Letsoalo, who was the acting group chief executive, with immediate effect following a unanimous board decision to terminate the secondment at the rail agency.
This comes after the controversy behind the remuneration package of Letsoalo in which he is accused of hiking his salary by 350 percent from R1.3 million to R5.9 million, demanding a chauffeur-driven vehicle and a company cellphone with unlimited calls.
Phathutshedzo Lukhwareni, will serve as RAF acting chief executive, according to the department.
Image (Suspended. RAF boss Adv Collins Letsoalo was placed on suspension with immediate effect).
