The Road Accident chief executive, Collins Letsoalo, has been temporarily suspended.
Letsoalo, who appeared before the Standing Committee on Public Accounts (Scopa) this morning, was suspended with full pay.
He has been implicated in several allegations of financial mismanagement and corruption, primarily centred around a controversial R79 million lease deal for the offices in Johannesburg.
A preliminary report by the Special Investigating Unit (SIU) found that Letsoalo interfered with the procurement process by overturning a bid committee’s recommendation to favour Mowana Properties, a losing bidder linked to the Government Employees Pension Fund, which ultimately secured the lease agreement.
The allegations extended beyond the lease to include irregularities in other RAF contracts, such as a R19 million cleaning and security contract irregularly extended over six years, a R313m backlog project unlawfully awarded, and inflated costs in an office furniture tender.
His contract with the entity is expiring in August.
Asked for a comment, RAF spokesperson, Linda Rulashe, said the entity would revert in due course.
This is a developing story.
