RAF CEO Collins Letsoalo Placed on Special Leave Amid SIU Investigations

Collins Letsoalo, the Chief Executive Officer of South Africa's Road Accident Fund (RAF), has been placed on special leave with immediate effect, as confirmed by a formal statement issued by the Department of Transport. The decision follows a special meeting convened by the RAF Board on Tuesday, 27 May 2025, and was communicated to Deputy Minister of Transport Mkhuleko Hlengwa in his role as the delegated shareholder representative.

Precautionary Measure, Not Disciplinary Action

The Department of Transport emphasized that the decision to place Letsoalo on special leave should not be construed as disciplinary action or a finding of guilt. Rather, it is a precautionary measure undertaken in the interests of good governance and to facilitate ongoing investigations being conducted by the Special Investigating Unit (SIU). These investigations are yet to be detailed publicly but are believed to concern governance and operational issues within the Fund.

“The CEO will be on special leave until the conclusion of the relevant investigations by the Special Investigating Unit (SIU), or such earlier date as the board may determine,” the department noted in its statement released on Wednesday. “It does not imply any prejudgment or adverse finding against the CEO.”

Governance and Legal Framework

The board's decision was framed within the statutory mandates of the Road Accident Fund Act, 56 of 1996, and the Public Finance Management Act, 1 of 1999, both of which guide the governance and financial management of public entities. Furthermore, the statement referenced alignment with the King IV Report on Corporate Governance, which emphasizes transparency, accountability, and ethical leadership within both the public and private sectors.

This legal grounding serves to reinforce the legitimacy of the action and shield it from perceptions of political or personal bias. It also demonstrates the board's commitment to upholding ethical standards while ensuring operational stability and investor confidence.

Interim Leadership Appointed

In order to ensure continued functionality and leadership during Letsoalo’s absence, the RAF Board has appointed Phathutshedzo Lukhwareni as Acting Chief Executive Officer. Lukhwareni is expected to maintain stability in the RAF's day-to-day operations and oversee ongoing initiatives without disruption.

Lukhwareni brings with him extensive public administration experience, most recently serving in senior executive roles in other government-linked entities. His temporary leadership is anticipated to uphold both the fiduciary duties of the RAF and the expectations of the Department of Transport.

Next Steps and Ministerial Oversight

Deputy Minister Hlengwa has instructed that the matter be officially placed on the agenda of the upcoming board meeting, scheduled for 9 June 2025. This meeting is expected to focus on updates regarding the SIU’s investigation, implications for RAF’s governance structures, and next steps in the administrative process.

The Minister’s directive underscores the seriousness with which the Department is treating the matter and its intent to ensure that the RAF adheres to high standards of integrity and accountability. The RAF, a critical public entity that administers claims for individuals injured or killed on South Africa’s roads, has faced scrutiny in recent years over financial sustainability and operational inefficiencies.

Context and Background

Letsoalo’s tenure at the RAF has been marked by both transformation efforts and controversy. His leadership has seen initiatives aimed at clearing claim backlogs and tightening financial controls. However, these changes have also drawn criticism from various quarters, including legal practitioners and civil society organizations, particularly regarding delays in settlements and changes to claim processing procedures.

The involvement of the SIU indicates that the investigations may pertain to alleged maladministration or misconduct that falls within the scope of the Unit’s mandate. The SIU, operating under a presidential proclamation, has the authority to subpoena witnesses, access documents, and recommend prosecutions or disciplinary actions if wrongdoing is found.

The coming weeks will be critical in determining the future leadership and operational direction of the Road Accident Fund. While Collins Letsoalo remains on special leave, the outcome of the SIU investigation and the deliberations at the 9 June board meeting will provide clarity on the next steps. For now, the focus remains on ensuring good governance, maintaining public trust, and safeguarding the integrity of a fund that millions of South Africans rely on for financial support in the wake of road tragedies.