Pretoria – Letsoalo, CEO of the Road Accident Fund (RAF), has been suspended to promote an ongoing investigation into possible corruption.
As a delegated shareholder representative, Deputy Minister of Transport Mkhuleko Hlengwa was notified by the RAF Board of Directors on Wednesday, May 28, 2025 that CEO Letsoalo had placed on a “special leave” “with immediate effect.”
The board's move follows a special meeting held on Tuesday, May 27th, 2025.
“The CEO will take special leave until the end of the relevant investigation by the Special Investigation Unit (SIU) or prior dates that may be decided by the Board,” the Department of Transport said.
The preliminary SIU report involves Letsoalo in alleged fraud, including a 79 million lease agreement with the fund's Johannesburg office.
“The board has shown that this is a precautionary measure and does not constitute a disciplinary action or presumption of guilt,” the department said.
“This decision was made solely for excellent governance as a precautionary measure to facilitate the ongoing research process.
“This does not mean prior judgment or unfavourable discoveries with the CEO.”
Retroaro, whose contract expired in August 2025, has been recorded as denying fraud on the matter, claiming that some people are trying to portray him as corrupt and incompetent.
The division has announced that Phathutshedzo Lukhwareni will serve as acting chief executive to ensure business continuity during Letsoalo's suspension.
“In making this decision, it must be noted that the Board cooperated with the principles of excellent governance set out in 56 of 1996, 1 ​​of 1999, and Wang IV, and cooperated in exercising its fiduciary duties,” the department said.
“The Deputy Minister has directed that this issue will be placed on the agenda of the Board meeting, which he called on June 9, 2025.”
The RAF is facing dire circumstances, and the revenues from fuel collection fail to meet the debt and liabilities of companies over R300 billion.
The Sunday Times reports that other suspicious RAF agreements based on the probe include:
R5.5 million vehicle leaseback fraud: Service provider R19 million accused of non-delivery of 56 vehicles: Cleaning and security contracts for R313 million “Siyenza” backlog project, irregularly extended over six years: R40M office furniture bid illegally awarded to tackle claims of 37 734: Cost claims from R36
