Collins Letsoalo defends RAF amid controversial lease claims

He and his board have nothing to hide and they are even prepared to share bank accounts with the Special Investigating Unit (SIU), CEO of the Road Accident Fund, Collins Letsoalo said following reports that he is implicated in a controversial deal involving a R79 million lease for the fund’s Johannesburg office.

Letsoalo called a media briefing on Monday to respond to what is said to be the SIU’s preliminary findings following a complaint by a whistleblower regarding the procurement of the Johannesburg building.

The whistleblower first complained to the Office of the Public Protector in which Letsoalo was accused of overturning a bid committee decision to favour Mowana Properties - a losing bidder - which secured the five-year contract.

The “preliminary report” - which was apparently leaked, also allegedly addressed other suspicious RAF contracts.

Letsoalo, however, only dealt with the procurement of the building aspect during his news briefing. He denied that there were any preliminary findings made against him and said an SIU report is for the eyes of the President before there can be any findings.

Letsoalo said he and his board have always worked closely with the SIU and he has nothing to hide. “I sleep well at night. I know there is nothing. I am not worried…They must investigate without fear or prejudice,” he said.

According to him, the allegations against him and the fund were made by a disgruntled former RAF employee who was dismissed due to sexual harassment claims.

He confirmed that the SIU has recently requested bank account statements from him and his staff as part of the investigations, and they have no problem providing this, provided that they will get an assurance that it won’t be leaked.

In explaining the building procurement issue, Letsoalo said he did not simply wake up one morning and decide on the new building which was to host the Johannesburg RAF office.

According to him, he went to government entities for assistance in finding a suitable building.

He said Marble Towers, where they were housed, was no longer suitable due to health hazards and other reasons.

Transnet, which he approached, did not have a suitable building. Prasa was then approached, but they wanted the RAF to first do renovations to a suitable building, which the fund did not have.

Letsoalo said the Public Investment Corporation then recommended Mowana Properties, which is a Government Employees Pension Fund portfolio company, to assist in finding suitable accommodation.

According to him, they looked at several buildings before they found a suitable one - which he said is cheaper per square metre than Marble Towers. In denying any wrongdoing, he said even the National Treasury endorsed this move.

Letsoalo, meanwhile, spoke at length about its ongoing dispute with the Office of the Auditor General over the appropriateness of the fund’s accounting standards. He maintained that the fund is on the right track with its accounting policy as many experts in this field were asked for guidance before the RAF changed it.

“Collins Letsoalo did not just wake up one morning and change the accounting policy,” he said.

While Letsoalo’s term as CEO of the fund is coming to an end at the end of August, Letsoalo said he is going nowhere. He said while people are doing their best to taint his name, he is confident that he will be reelected come August.

He remarked that under his leadership the fund has saved billions of rands and, according to him, his good leadership will prevail when it comes to choosing the next CEO.