CEO who faces possible criminal charges paid R9.8 million

Former Road Accident Fund (RAF) CEO Collins Letsoalo was paid R9.4 million in the 2025 financial year, which included a bonus of R2.8 million.

The RAF is a social security fund that provides cover to all road users within South Africa’s borders.

It provides rehabilitation and compensation to persons injured in motor vehicle accidents and actively promotes the safe use of all South African roads.

This sounds like a noble goal, but mismanagement and underhanded legal tactics have brought the state agency to its knees.

The Road Accident Fund faces critical challenges, primarily insolvency driven by underfunding, with liabilities exceeding R300 billion.

According to the RAF’s 2025 annual report, it has 255,487 outstanding claims. It has significantly increased since then.

The fund has been technically insolvent for a considerable period. This is mainly due to the gap between revenue and expenditure.

“The revenue collected is not on the basis of the risk profile attributable to claims or occurrence of road accidents,” the RAF said.

However, many experts highlighted that the fund’s problems are partly self-inflicted through mismanagement and corruption.

Recent hearings into the fund included widespread allegations of fraud, mismanagement, and corruption.

Reports indicate gross mismanagement, procurement irregularities, overpricing of services, and potential fraud.

The RAF is also plagued by poor record-keeping, non-responsiveness of consultants, and delays in processing claims.

Approximately 20% of the budget is spent on legal fees to establish fault and on medico-legal reports.

Some experts blamed poor leadership and an ineffective board. They want to see systemic reform beyond just addressing internal management issues.

Former RAF CEO Collins Letsoalo paid R9.8 million

The Road Accident Fund’s 2025 annual report showed that former RAF CEO Collins Letsoalo was paid R9.839 million in the last financial year.

His pay package included a basic salary of R7.066 million and a performance bonus of R2.773 million.

The RAF explained that this salary is market-related and kept at levels that will assist in retaining and attracting key leadership skills.

However, many people expressed concern about this high salary, given the RAF’s dismal financial position.

The Road Accident Fund’s total liabilities of R41.862 billion dwarf its total assets of R14.150 billion. This leaves it with total net liabilities of R27.712 billion.

Simply put, the RAF is technically insolvent, and there is no clear way to turn this situation around.

As politicians grappled with this situation, Letsoalo has been at the center of significant legal and political turbulence.

He is no longer at the helm of the organization following a period of suspension and the expiration of his contract.

In May 2025, Letsoalo was placed on special leave, followed by a formal suspension in June.

The primary reason cited was insubordination, specifically his refusal to appear before Parliament’s Standing Committee on Public Accounts (SCOPA).

He challenged his suspension in the High Court, but the application was dismissed in late June 2025.

In August 2025, the Minister of Transport confirmed that Letsoalo’s contract had run its course and he was officially gone.

As of February 2026, SCOPA has concluded its inquiry into the RAF without Letsoalo’s testimony.

He repeatedly ignored summonses, leading to discussions about potential criminal charges for failing to account to Parliament.