EFF Reaction on suspension of Collins Letsoalo
By Thabo Mosia
The Economic Freedom Fighters (EFF) has fiercely criticised the Road Accident Fund (RAF) board’s decision to place CEO Collins Letsoalo on special leave, labelling it a “witch hunt” aimed at damaging his reputation for his efforts in tackling corruption within the RAF and the judiciary. The board insists this is a “precautionary” step while the Special Investigating Unit (SIU) investigates corruption allegations, but the EFF claims it’s a deliberate move to punish Letsoalo for his transformative work and for exposing deep-seated rot in the system. This clash has ignited a firestorm of debate about fairness, governance, and the battle against corruption in South Africa’s public sector.
Who Is Collins Letsoalo?
Collins Letsoalo took the helm as RAF CEO in September 2019, bringing with him a wealth of experience in economics and central banking. Known as a bold reformer, he has driven major changes to cut costs and boost efficiency at the RAF, a fund set up to compensate road accident victims. Under his watch, the RAF has saved a staggering R37 billion over five years by bringing services in-house and reducing dependence on outside law firms. He’s also cracked down on fraud, exposing syndicates of private hospitals and legal firms accused of inflating claims to siphon money from the fund.
But Letsoalo’s time in charge hasn’t been smooth sailing. His tough approach has ruffled feathers, sparking legal battles and accusations of mismanagement. Supporters hail him as a champion for cleaning up the RAF, while critics argue his style has overstepped the mark. His contract runs until August 2025, and he’s hinted at staying on if his work is judged a success—though recent events may throw that into doubt.
Why Was He Suspended?
The RAF board placed Letsoalo on “special leave” following an SIU investigation into alleged corruption and financial mismanagement. At the heart of the probe is a R79 million lease deal for the RAF’s Johannesburg offices with Mowana Properties, tied to the Government Employees Pension Fund (GEPF). The SIU’s early findings suggest Letsoalo meddled in the bidding process to favour Mowana, even though it initially lost out. Other claims point to dodgy contracts, like a R19 million deal for cleaning and security and a R313 million project to clear a claims backlog.
Letsoalo has hit back hard, denying any wrongdoing. He insists the lease was a smart move—cheaper than other options and greenlit by the National Treasury. He’s accused the media and unnamed groups of twisting the truth to smear him. The SIU probe, launched in 2021 after a presidential order, was actually requested by the RAF and its former board to root out corruption. But Letsoalo fears it’s now being weaponised against him personally, rather than fixing bigger problems.
The board made the call at a special meeting on Tuesday, 27 May 2025, and Letsoalo was sidelined the next day. Phathutshedzo Lukhwareni has stepped in as Acting CEO to keep things running.
EFF’s Fiery Reaction
EFF spokesperson Sinawo Thambo didn’t hold back in a statement on Wednesday, 28 May 2025. “Letsoalo is not only being targeted for his transformation work at the RAF, but also for his bold stance against corruption within the judiciary,” he said. Thambo pointed to Letsoalo’s outspoken claims about “rot and collusion” between certain judges, lawyers, and fake RAF claimants who’ve built a web of fraudulent medico-legal schemes to bleed the fund dry.
The EFF sees this as more than a suspension—it’s an attack on a man who dared to confront powerful corrupt networks. They argue the “special leave” is a sham, forced on Letsoalo without his consent or a fair process, all to paint him as guilty before any proof emerges. With his term ending in August 2025, the timing looks fishy to the EFF—like a plot to derail his reappointment and trash his legacy.
The party’s not stopping at words. They’re writing to Transport Minister Sindisiwe Chikunga to demand answers: who authorised this, why, and how come basic fairness was ignored? They also want the issue dragged before the Portfolio Committee on Transport for a full reckoning, where the Minister and RAF board must explain themselves—and face Letsoalo’s corruption revelations head-on.
What the Government Says
The Department of Transport fired back with its own statement on 28 May 2025. Deputy Minister Mkhuleko Hlengwa, briefed by the board, said Letsoalo’s leave lasts until the SIU wraps up or the board decides otherwise. “The CEO will be on special leave until the conclusion of the relevant investigations by the Special Investigating Unit (SIU), or such earlier date as the board may determine,” the statement read. They stressed it’s not a punishment or a guilty verdict—just a cautious step to let the probe run its course.
The department framed it as a duty under the Road Accident Fund Act, the Public Finance Management Act, and good governance rules from King IV. Hlengwa has called a board meeting for 9 June 2025 to dig deeper into the mess. For now, they’re standing firm: this is about keeping things clean, not settling scores.
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