RAF CEO Implicated in R79m Lease Scandal – Sunday Times Reveals

A preliminary report by the Special Investigating Unit (SIU) has implicated Road Accident Fund (RAF) CEO Collins Letsoalo in alleged wrongdoing involving a R79 million lease deal for the fund’s Johannesburg offices.

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 favor Mowana Properties, a losing bidder that ultimately secured the five-year contract.

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 Government Employees Pension Fund (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.

Other Suspicious RAF Contracts Under Probe

• R19m Cleaning & Security Contract: Irregularly extended over six years.
• R313m “Siyenza” Backlog Project: Unlawfully awarded to tackle 37,734 pending claims.
• R40m Office Furniture Tender: Allegedly amended illegally, inflating costs from R36m.
• R5.3m Vehicle Leaseback Scam: Service provider accused of non-delivery on 56 vehicles.

The Sunday Times has reviewed the SIU’s findings and whistleblower documents, corroborating claims with insider sources. The Public Protector’s office is also investigating.

What’s Next?

With mounting evidence of financial mismanagement, pressure builds on Letsoalo as the SIU finalizes its report. Will this lead to criminal charges or a major RAF overhaul?