Claims of fraud, cover-ups and lack of crucial security vetting pile up at beleaguered agency
Road Accident Fund CEO Collins Letsoalo was accused by dismissed former security manager. File photo.Former Road Accident Fund boss Collins Letsoalo flew under the radar for five years at the beleaguered agency without any security vetting — despite his office insisting he had “top secret” clearance.
As parliament’s standing committee on public accounts delves deeper into the RAF’s affairs, a December 2021 letter from Letsoalo’s office to the State Security Agency has surfaced in which the former CEO’s head of security, Stephens Msiza, declares that Letsoalo and executive Mpho Manyasha have “top secret” clearances. It does not specify who vetted them and when. The SSA, the body empowered to conduct such probes, was seemingly bypassed. Msiza, who was hand-picked by Letsoalo, was allegedly parachuted in after a stint at the Passenger Rail Agency of SA and is a former bodyguard to Julius Malema. The latest revelations come as the Special Investigating Unit probes allegations that Letsoalo interfered in a R79m procurement process for the RAF’s Johannesburg regional office building, prompting concerns about irregular expenditure and disregard for supply chain management policies. Testifying at the Scopa inquiry this week, the RAF’s former national security manager, Matome Lehomo, said the letter was drafted after the SSA asked the fund to provide a list of executives, their security status and if they had clearances and at what levels. My subordinate indicated that she was informed by the CEO’s via e-mail that he did possess the necessary clearance. In the absence of proof, I still refused to sign. It was eventually signed on December 8 2021 by security specialist Mr Msiza“I noted that the draft letter indicated that the CEO had top-secret clearance. I requested proof of this from my subordinate and refused to sign until I could satisfy myself that the content was true. My subordinate indicated that she was informed by the CEO’s via e-mail that he did possess the necessary clearance. In the absence of proof, I still refused to sign. It was eventually signed on December 8 2021 by security specialist Mr Msiza,” said Lehomo, who was later suspended and hounded out of the RAF. Adding fuel to the fire, the department of transport, under which the RAF falls, was reportedly unaware of any vetting for Letsoalo and his family — or the“The branch became aware of it only after his founding affidavit was filed during court proceedings,” said transport spokesperson Collen Msibi. The vetting of executives in state-owned entities is crucial because they often handle classified information and manage national key points. Vetting is particularly vital in supply chain management, which is susceptible to corruption. Further exposing the alleged cover-up, a July letter from the SSA’s acting director-general, Tony Msimanga, to then RAF board chair Zanele Francois explicitly stated Letsoalo “did not submit any vetting forms”.We operated on the assumption that every executive was vetted, but witnesses have testified that was notScopa chairperson Songezo Zibi told the Sunday Times Letsoalo had told the committee he had been vetted. “We operated on the assumption that every executive was vetted, but witnesses have testified that he was not,” said Zibi. Letsoalo has written to Scopa saying he plans to make a sworn statement about “executive interference, attempts to capture the RAF, weaponised investigations, judicial corruption and Scopa members influenced by law firms and other stakeholders”. “I am willing to appear before parliament and respond to any evidence presented under oath by witnesses,” Letsoalo wrote. He said he would not address rumours or anonymous claims.The SIU has also flagged “significant concerns” regarding the recruitment, vetting and appointment processes for senior RAF officials. One particular case concerned chief investment officer Sefotle Modiba, who was allegedly recruited despite having resigned from the City of Johannesburg while on 12 counts of serious financial misconduct.The Sunday Times has previously exposed how Letsoalo allegedly spent millions in public funds on his security detail, including a R4m armoured BMW X5, over three years. Now the SIU is preparing civil litigation against Mjayeli Security Services, the company awarded a R5.18m contract that ballooned to R9.6m because of “irregularities” and “contract escalations”. The SIU is pushing for the Special Tribunal to declare the entire procurement and appointment process invalid. Under Letsoalo’s leadership, the RAF’s deficit ballooned to R2.3bn by March this year. It was also issued with adverse outcomes by auditor-general Tsakani Maluleke for three financial years, mainly due to the fund’s decision to adopt a new accounting standard that resulted in claims liabilities and claims expenditure being understated. Letsoalo led the RAF from 2020 before being suspended in June this year for refusing to appear before Scopa. His contract expired while he was on suspension.
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