Road Accident Fund in Crisis: CEO Suspension, Legal Battles, and Governance Concerns (9 June 2025)

Road Accident Fund in Crisis: CEO Suspension, Legal Battles, and Governance Concerns (9 June 2025)

By Wynand Holtzhausen | 9 June 2025

The Road Accident Fund (RAF) in South Africa is facing a period of intense scrutiny and instability, with recent developments highlighting deep governance challenges, legal battles, and concerns over the safety of its leadership. Here’s a summary of the latest news and key issues affecting the RAF as of June 2025.

1. CEO Collins Letsoalo Suspended Amid Legal and Safety Drama

RAF CEO Collins Letsoalo has been suspended by the board, triggering a high-profile legal battle. Letsoalo has filed an urgent application in the Gauteng High Court to overturn his suspension, arguing that the board’s decision was unlawful, irrational, and unreasonable. He is also seeking to retain his security detail, citing credible threats to his life, including a past incident where armed men targeted him at the RAF offices. Letsoalo’s contract was due to expire in August, but the board had previously indicated it would be renewed. The court is expected to hear the matter next week, with the RAF board required to respond by June 11.

2. Acting CIO Sefotle Modiba Placed on Precautionary Suspension

The RAF board has also placed its acting Chief Investment Officer, Sefotle Modiba, on precautionary suspension. This follows allegations that Parliament’s Standing Committee on Public Accounts (Scopa) was misinformed about Modiba’s departure from the City of Johannesburg. Discrepancies between statements from Modiba’s attorneys and the City of Johannesburg have raised concerns about transparency and governance within the RAF.

3. Parliamentary and Departmental Oversight Intensifies

Parliament’s Portfolio Committee on Transport and Scopa have both expressed frustration with the RAF’s leadership and governance. Issues cited include vacancies in critical positions, ongoing litigation, and a lack of effective communication with oversight bodies. The Department of Transport is set to meet with the RAF board this week to discuss interventions aimed at restoring good governance and ensuring the RAF fulfills its mandate to compensate road accident victims timeously.

4. Broader Implications for Road Accident Victims

These governance and leadership crises come at a time when the RAF is under pressure to improve service delivery and financial management. Ongoing legal battles, allegations of misconduct, and instability at the top could further delay compensation for road accident victims and erode public trust in the fund.

5. What’s Next?

The coming weeks will be critical for the RAF as the courts review the CEO’s suspension and the Department of Transport considers possible interventions. Stakeholders and the public will be watching closely to see whether the RAF can overcome its current challenges and refocus on its core mission.

For more updates on the Road Accident Fund and other key developments in South Africa, stay tuned to our daily blog.

Sources:

• Moneyweb: State capture allegations come back to haunt RAF acting CIO (9 June 2025)
• IOL: Collins Letsoalo’s urgent plea for reinstatement amid life-threatening concerns (7 June 2025)

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