A former executive at the Road Accident Fund (RAF) has laid bare the extent of the rot at the agency in a sworn affidavit submitted to Parliament’s Standing Committee on Public Accounts (Scopa).
The agency’s axed national security manager, Matome Lehomo, made damning allegations of maladministration and irregular appointments, painting a picture of an entity where governance systems were allegedly subverted to benefit top executives and where whistleblowers were punished for speaking out.
He accused the fund’s top leadership of ignoring corporate governance procedures, sidestepping the board and misusing public funds to finance what he described as “irregular and excessive” executive protection for the former chief executive officer Collins Letsoalo.
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Lehomo, who joined the RAF in 2003, stated in the 17-page affidavit that the controversy began shortly after Letsoalo’s appointment as CEO in 2020, when a standard threat and risk assessment conducted by the South African Police Service (Saps) found no direct danger to his safety.
He said despite this, a private security company was appointed to perform another assessment, contrary to established RAF and state security policy, which then recommended the hiring of bodyguards for Letsoalo.
According to Lehomo, the board had approved a capped security allowance of R480 000 per annum as a fringe benefit for the CEO. But what followed was a gross deviation from that resolution.
He said instead of limiting expenditure to the approved amount, a security specialist allegedly brought in from the Passenger Rail Agency of South Africa (Prasa) arranged for a Durban-based private firm to provide 24-hour VIP protection for Letsoalo.
Lehomo claims that this cost the RAF around R150 000 per month, roughly R1.8 million per year and almost four times the board’s authorised limit.
Recruitment policies ignored for security specialist
The specialist was allegedly seconded from the Prasa to RAF without following any recruitment policies.
“He arrived as an outsider, was based in the CEO’s office, and began issuing instructions to my staff without any official appointment, vetting or contract,” Lehomo stated.
He claims the specialist effectively took over the security division, sidelining him and his deputy, and began restructuring the department to his advantage.
When Lehomo and the physical security manager, Muntuwenkosi Mhlanga, raised concerns about the irregularities, both were suspended.
“After my suspension, the newly created position of Senior Security Manager, essentially my old job, was re-advertised with downgraded qualifications. It was subsequently given to the same security specialist, suggesting that the process was manipulated to suit him,” he stated.
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He further detailed how RAF approved the expanded executive protection, in direct contradiction to the board’s decision, and that the memorandum authorised payments far beyond the R480 000 limit, yet there was no indication that the executive had the board’s approval to do so.
Charged with misconduct after questioning expenditure
Lehomo claims the Letsoalo’s personal protection arrangement was billed to the RAF’s operational cost centres, including the security department and facilities management units. The expenditures reportedly included firearms, vehicles, hotel accommodation for protectors and fuel for a hired BMW 5 Series used by the CEO.
He said his attempts to question the expenditures led to their downfall and the he and Mhlanga were charged with misconduct over a minor security maintenance contract worth about R200,000.
The agency allegedly paid more than R10-million for Letsoalo’s bodyguard, with Public Protector Advocate Kholeka Gcaleka probing allegations that the bodyguards were used for private purposes, including working at his Pretoria farm and escorting his son to visit his girlfriend in Mpumalanga.
Lehomo said he was compelled to speak out “in the public interest and in defence of transparent governance”.
“I have served the RAF faithfully for nearly two decades. What I witnessed in recent years was the erosion of accountability, the sidelining of competent professionals, and the misuse of funds meant for victims of road accidents. I trust that Parliament will take appropriate action,” he added.
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The agency has been under Scopa scrutiny and other parliamentary committees since last year.
For nearly a year, the committee has been demanding information about the fund’s finances, but much of that information has either not been provided or has proven unreliable.
Committee chairperson Songezo Zibi said they are seeking to uncover the root causes of the RAF’s persistent financial problems and ensure accountability for how public funds are spent and managed.
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