CEO, CFO, and other top executives of R48 billion RAF suspended

The Board of the Road Accident Fund (RAF) has placed the Acting Chief Executive Officer, Chief Financial Officer, Chief Governance Officer, and the Head in the Office of the CEO on precautionary suspension with immediate effect.

“The decision was taken to allow for an independent and unhindered investigation into certain administrative and governance matters within the organisation,” said the board in a statement on Friday, 7 November.

“These precautionary measures do not in any way constitute a finding of wrongdoing against the affected officials but are intended to ensure the integrity and transparency of the investigative process.”

They said that its decision aims to serve the organisation’s best interests, protect public trust, and maintain high ethical standards in managing funds.

The RAF, a government insurer for accident victims funded by a R2.18-per-liter fuel tax, is facing a serious financial and governance crisis. It collects over R48 billion annually from the fuel tax.

Members of Parliament in the Standing Committee on Public Accounts (SCOPA) probing the entity warn that it faces insolvency as it continues to battle corruption claims, and scrutiny.

The RAF had R10.4 billion in unpaid claims at the end of its financial year to 31 March 2025 – and a total claims liability of R40.4 billion – but maintains it can meet its obligations over the next 12 months.

Monthly fuel levy revenue of about R4 billion cannot cover its obligations, rendering the fund technically bankrupt.

Allegations of hidden funds, manipulated accounting, and asset-shielding tactics have deepened mistrust.

In July 2025, Transport Minister Barbara Creecy dissolved the RAF Board, citing persistent dysfunction. A new interim board was appointed in August, following the suspension of CEO Collins Letsoalo for insubordination.

Parliament’s SCOPA has launched an inquiry into the RAF’s “toxic leadership” and possible criminal misconduct, while the Auditor-General and SIU probe procurement and governance failures.

The committee received over 100 submissions from lawyers, doctors, RAF staff, and victims and is now calling on these parties to make statements in the committee to uncover the extent of the rot in the RAF.

Allegations include inadequate background checks on senior executives with histories of reckless financial decisions, an average delay in claims processing of 4 years, and financial mismanagement.

The RAF has undisclosed liabilities of R500 billion, which taxpayers will ultimately end up having to fund.

In the latest parliamentary hearings, former Chief Actuary of the RAF, Itayi Charakupa, said there is “no logical reason why” the RAF should underreport its liabilities, as has been uncovered. 

“Whether it is R1 trillion or R1, we are a public entity, we’re not raising funding. It is crucial for decision makers to know the RAF’s accurate state of affairs,” he said.

The interim board said that since suspending the board has implemented measures to maintain business continuity and ensure the RAF fulfils its mandate.

It added that operations remain stable, service delivery continues, and the Fund is committed to governance, accountability, and ethical standards.

Parliamentary inquiry

ActionsSA MP Alan Beesley, who sits on Parliament’s SCOPA, welcomed the suspensions

“The SCOPA inquiry into RAF has laid bare how corruption and incompetence has been allowed to flourish at the RAF,” said Beeslet.

Many good and competent staff who made a stand against the wrongdoings have been bullied into submission, he added.

“Ultimately, it is the victims of accidents that have borne the brunt of this incompetence and corruption as claims registered and paid out has reduced to a trickle.”

“There must be consequences, and hopefully, the suspension of the senior executive management is a start.

The RAF spent R10 million on personal security for now-suspended CEO Collins Letsoalo, including hotel stays for bodyguards.

The entity has received an adverse or disclaimed audit opinion for the last five years from the Auditor General of South Africa (AGSA).

As of the 2024/2025 financial year, the RAF is running on a R27.8 million deficit. This amount has been ballooning for over ten years.

Despite efforts to stabilise operations, including a R3.3 billion payout drive in September 2025, thousands of claimants remain unpaid, with cases delayed for years.

Currently, 35 people are suspended on full pay; some have been suspended for over 4 years, amounting to around R48 million.

Meanwhile, former CEO Collins Letsoalo reportedly spent over R23 million on personal security for himself and his family between 2023 and 2025, among other issues raised.