Former RAF boss Collins Letsoalo faces sequestration over R1m legal bill

Share current article via EmailShare current article via FacebookShare current article via TwitterShare current article via LinkedInMduduzi NonyaneOpens in new windowOpens in new windowEnter fullscreen mode displaying this image.ExpandFormer RAF CEO Collins Letsoalo is facing sequestration proceedings. File picture: Veli Nhlapo Story audio is generated using AI

Former Road Accident Fund (RAF) CEO Collins Letsoalo faces sequestration proceedings over an alleged unpaid legal bill of more than R1m, with the attorneys pursuing him telling the Gauteng High Court that he acknowledged the debt but said he was struggling financially.

Motalane Attorneys wants the high court in Pretoria to place Letsoalo’s estate under provisional sequestration over R1,059,736.11 allegedly owed for legal fees and disbursements.

In a founding affidavit filed on October 16, attorney Emmanuel Mojalefa Motalane says Letsoalo engaged his firm in May 2025 to provide legal services in an ongoing matter involving the RAF.

The parties allegedly agreed that Letsoalo would pay R3,000 an hour for the work, in addition to reimbursing the firm for disbursements.

Motalane says the firm rendered legal services on Letsoalo’s instructions between May and December 2025, with payment due upon presentation of invoices.

By the end of December, the account had allegedly reached R1,059,736.11.

The attorney says repeated demands between January and October this year failed to secure payment, prompting him to approach the court.

But it is a message allegedly sent by Letsoalo on October 4 that is a key part of the firm’s case.

In the message reproduced in the affidavit, Letsoalo allegedly wrote:

“Hi MJ. I am sorry to learn about this, my brother. I thought we were to appeal against the decision. At this point I don’t have my cash … and had to even make arrangements for even school fees, let alone other expenses. It’s a big struggle for me. Trust me, I would pay any money if I had it.”

Motalane says the reference to an appeal concerned the outcome of the underlying matter in which the firm had been involved.

He argues that Letsoalo’s message acknowledges the indebtedness and demonstrates his inability to pay the amount due.

“The respondent’s message is an unequivocal statement that he cannot pay any of his creditors,” Motalane states in the affidavit.

“He says that he does not have money, that he is under financial pressure, that he has had to make special arrangements just to meet school fees, and that he would pay if he had the money.”

The attorney says he gave Letsoalo an opportunity to make arrangements to settle the account before resorting to sequestration proceedings.

On October 6, the firm issued a letter of demand calling on Letsoalo to settle the debt within five days.

However, Motalane alleges that the amount remained unpaid when he prepared the application.

“The respondent has not paid the sum due to the applicant or any part of it or secured or compounded it in any manner,” the affidavit states.

Motalane further alleges that no proposal to settle the debt through instalments or other arrangements had been forthcoming.

He argues that the circumstances justify sequestration under the Insolvency Act, saying the process would allow a trustee to investigate Letsoalo’s financial affairs and establish the extent of his assets and liabilities.

The attorney acknowledges that he does not know the full extent of Letsoalo’s financial position but says Letsoalo had referred to obligations involving school fees, bonds on properties and other debts shared with him.

Motalane argues that sequestration would enable a trustee to investigate Letsoalo’s movable and immovable property, examine potentially voidable transactions and determine whether assets could be recovered for creditors.

He also contends that the process would prevent the disposal of assets to the detriment of creditors and ensure that any proceeds are distributed in accordance with the law.

“The only manner in which the full extent of the respondent’s financial position with regard to the value of his assets and the extent of his liabilities can be established is by the appointment of one or more trustees to investigate his financial affairs fully,” he states.

The firm is asking the court to issue a rule nisi calling on Letsoalo and other interested parties to show why his estate should not be placed under final sequestration.

The application also seeks an order dealing with the costs of the proceedings.

Letsoalo didn’t respond to questions sent to him.

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