SCOPA hears how 2 former RAF officials were sidelined & worked out their jobs after Letsoalo appointed CEO

Two more former Road Accident Fund (RAF) officials have testified about being sidelined and ultimately worked out of their finance jobs when Collins Letsoalo was appointed as the chief executive officer in 2020.

They told Parliament’s inquiry investigating financial mismanagement that he populated his personal office with a number of "specialists" who took over their jobs.

The pair believes that by disagreeing with a switch to an unsanctioned accounting standard that reduced the fund’s liabilities eventually cost them their jobs.

READ MORE:

• RAF accounting standard shift was to improve financials, former RAF official tells Parly

• Staff cuts, scrapping of legal panel blamed for RAF backlog before Parly

• Parliament hears how Benoni hospital shut down due to R300m it's owed by RAF

• Issuing a subpoena to force witnesses to testify before SCOPA an option of last resort - Zibi

• RAF Inquiry: SCOPA agrees to allow witness to conceal their identity

• Suspended RAF official lifts lid on culture of fear under former CEO Letsoalo

• RAF 'vacillating between hope and a total cancerous and fetid situation' - Polela

The one-time acting chief financial officer, Victor Songelwa, told the committee that Letsoalo decided to restructure the organisation when he was appointed in 2020.

Songelwa said a parallel structure of at least eight specialists was appointed in the CEO's office that took over the jobs of general managers who were eventually pushed out.

"I was removed from the position of acting chief financial officer and one of the senior finance specialists was made acting CFO. So indeed, this had an impact on the functions."

Senior actuarial manager, Itayi Charakupa, testified about the appointment of an investment officer in Letsoalo’s office, which in his view, was not needed given that the fund was not expected to invest.

"The acting chief investment officer indicated that he didn’t need actuarial evaluation reports."

Charakupa said he was eventually dismissed by the investment officer following disagreement over the value of claims.

Songelwa said after almost ten years at the fund, he was pushed out earlier this year, just a few months before his contract expired.

ALSO READ:

• Parly inquiry questions contradictory evidence about RAF claims without using lawyer

• Personal security arranged for ex-RAF CEO Letsoalo despite no threats against him, SCOPA told

• Road Accident Fund accused of evading payments and attachments

• Road Accident Fund officials accused of obstructing SIU investigations

• SIU points finger at Letsoalo for governance failures, mismanagement claims at RAF

• Double claim payments generally not due to corruption, RAF tells MPs