RAF rescinds decision to place CEO Letsoalo on special leave, replaces it with suspension
The board on Tuesday told Parliament the about-turn follows advice that the special leave decision was not legally sound.
The Road Accident Fund CEO, Mr Collins Letsoalo, held a media briefing at the RAF Head Office on 5 December 2024 to address matters in the media. Picture: Road Accident Fund/@RAF_SA on X
CAPE TOWN - The Road Accident Fund (RAF) has rescinded a decision to place chief executive officer (CEO) Collins Letsoalo on special leave and has now replaced it with a suspension.
The board on Tuesday told Parliament the about-turn follows advice that the special leave decision was not legally sound.
It said it was suspending Letsoalo for ignoring an instruction not to travel to Cape Town last week, where the standing committee on public accounts (SCOPA) was probing a number of matters at the beleaguered fund.
The board was ordered to appear before the transport portfolio committee on Tuesday, which said it was in the dark about these developments.
After a back and forth between RAF and SCOPA about their appearance at last week’s meeting, the RAF board said it was decided that an acting CEO would go, after Letsoalo allegedly refused to attend.
Deputy board chairperson Nomonde Mabuya-Moloele said that although Letsoalo did not attend the SCOPA meeting, he still travelled to Cape Town without the expenditure being approved.
“The CEO was still adamant he’s not going to SCOPA and that was clearly articulated. And he wouldn’t necessarily encourage his team to go to SCOPA. That we saw as defiance by the CEO”.
Although the CEO’s contract makes provision for special leave, Mabuya-Moloele said the company’s policy does not, and at a board meeting on Monday night, it was advised to retract the decision.
“On the 27th of May, it was made clear he’s not coming to Parliament because he was taking instructions from his lawyer and not necessarily from us. And that we saw as defiance and insubordination. “
The committee has taken a dim view of the board’s handling of the matter, with some Members of Parliament (MPs) saying its actions appear questionable.