RAF suspends four senior officials pending investigation into abuse of power. Image: RAF.
(The POst News)– The Road Accident Fund has suspended four senior executives to allow for an independent investigation into serious allegations of misconduct and abuse of power.
The decision follows damning testimonies presented to Parliament’s Standing Committee on Public Accounts (SCOPA).
The board stated that these suspensions would allow for an “independent and unhindered investigation” into the fund’s operations.
SCOPA Oversight Triggers Major Shake-Up
SCOPA intensified its scrutiny of the RAF in early October and November, with Chairperson Songezo Zibi leading a series of hearings that exposed systemic failures in governance, financial reporting, and executive conduct.
Witnesses testified that the RAF’s leadership manipulated internal processes, resisted audits, and created a culture of fear.
Zibi described the RAF’s financial practices as “inefficient” and warned that the fund’s liabilities could balloon to R400 billion due to questionable accounting adjustments.
According to IOL, former RAF senior manager Ian Barriel explained that disciplinary processes often dragged on for extended periods, leaving employees suspended with full pay.
While testifying before SCOPA’s parliamentary inquiry into RAF operations, Barriel pointed out that the fund outsourced its investigations, which contributed to delays.
“We had a panel of investigators focused on legal and compliance matters,” he said. “They handled cases involving serious misconduct and major offenses, but the process took time since charges were only laid after the investigation concluded.”
Meanwhile, before Barriel testified, PricewaterhouseCoopers (PwC) appeared before SCOPA and maintained that it did not advise the Road Accident Fund (RAF) to adopt a new accounting standard—one that the high court later declared invalid.
PwC partner Johan van Huyssteen stated that the RAF board had already made the decision before hiring PwC to assist with its implementation.
The RAF’s shift in accounting practice allowed it to significantly lower its reported contingent liabilities by excluding thousands of claims that had not yet received settlement offers.
EWN reported that Van Huyssteen clarified that he did not personally handle the RAF’s initial engagement in 2021, when the fund requested a quotation and hired PwC for nearly R800,000 just two weeks later.
Executives Push Back
Suspended executives Collins Letsoalo and Sefotle Modiba have denied wrongdoing. Letsoalo claimed that his efforts to expose corruption within the RAF led to retaliation.
He argued that he saved the fund millions by clamping down on fraudulent claims and inflated legal fees.
It was also revealed during SCOPA that Lestoalo spent over R23 million on personal security, including nine bodyguards and an armored vehicle, according to parliamentary testimony.
Parliament heard that Letsoalo had assembled a security team of nine bodyguards and used a luxury armored BMW X5.
Stephens Msiza, RAF’s head of security, testified that he had been headhunted from PRASA specifically to manage Letsoalo’s security needs. He admitted that the escalation from six to nine bodyguards seemed excessive but claimed Letsoalo insisted his life was under threat.
About the Author
Discover more from The Post News
Subscribe to get the latest posts sent to your email.
