Collins Letsoalo, CEO of the Road Accident Fund (RAF), has been implicated in a R79 million lease scandal involving the fund’s Johannesburg offices, according to a preliminary report by the Special Investigating Unit (SIU).
The report, reviewed by the Sunday Times, supports allegations made by a whistleblower to the Public Protector, accusing Letsoalo of manipulating RAF’s procurement process to favor Mowana Properties, a losing bidder that was later awarded the five-year lease.
Key SIU Findings:
- Whistleblower Claims Confirmed:
The SIU’s investigation found credible evidence of tender manipulation, not only in the lease deal but also in other service contracts including cleaning, security, and legal services. - Letsoalo’s Justification:
Letsoalo defended the decision, saying Mowana Properties—owned by the Government Employees Pension Fund (GEPF)—was selected to ensure rental payments would “return to the state.” - Chronic Office Issues:
He also noted that the RAF had been unable to secure new office space for five years before his 2019 appointment, justifying urgency in finalizing the deal.
Other RAF Contracts Under SIU Scrutiny:
- R19 million Cleaning & Security Contract:
Repeatedly and irregularly extended over six years. - R313 million Siyenza Backlog Project:
Awarded without proper procedures to address 37,734 pending claims. - R40 million Office Furniture Tender:
Illegally amended, pushing costs from R36 million to R40 million. - R5.3 million Vehicle Leaseback Deal:
Allegations that the service provider failed to deliver 56 vehicles.
Ongoing Investigations
The SIU’s findings, supported by whistleblower documentation and insider accounts, have been handed over to the Public Protector’s office, which is conducting a parallel investigation. The RAF has not yet issued a formal statement in response to the SIU’s preliminary report.
What’s Next?
The allegations against Letsoalo mark yet another controversy surrounding the RAF’s leadership and procurement processes. The SIU is expected to finalize its report in the coming months, which could result in disciplinary action, criminal charges, or both—depending on the final findings.
