Parliamentarians heard on Wednesday night that suspended Road Accident Fund (RAF) CEO Collins Letsoalo also held the position of Chief Claims Officer while he was at the helm of the entity and received an increased bonus for the additional duties.
Letsoalo occupied dual roles for two years while the RAF was saddled with a backlog of claims.
Briefing the Transport Portfolio Committee, acting CEO Phathutshedzo Lukhwareni told the committee that the entity has 17% vacancy rate.
Lukhwareni said there were challenges in filling the position of Chief Claims Officer.
“We had we gone to market a couple of times but we now have to go back,” he said.
Asked who performed the role as a result of the vacant position and whether the board was aware Letsoalo occupied that position, board chairperson Zanele Francois said they had continuously raised the issue of the high vacancy rate at the entity, particularly in the executive management positions.
“We even directed the subcommittee of the board to prioritise this matter. We were told most key positions were in the process (of being filled),” Francois said, adding that there were a lot of challenges in attracting competent people to fill the positions.
“The challenge was could not get the right candidate,” she said.
She recalled the post being held temporarily by a regional manager.
She said when Letsoalo occupied the position of claims officer simultaneously as CEO, they were told that he was the only person with the competency, because the RAF was a complex organisation.
“It was never put before the board to approve. We had concerns around it. We were given assurances that there are checks and balances and nothing irregular was happening in that particular environment.”
Lukhwareni said Letsoalo had seen it fit to take the full responsibility in that position as there was a crisis in the unit at the time.
“It was meant to be a temporary intervention. There was a lot of work done to fill that position but most failed. There is someone acting in that position at the moment,” he said.
Audit committee chairperson Lekau Moses Nyama said a report around the role of Letsoalo in that position was noted.
“We were comfortable with the reasons (for him being) given that function. We did not see why the CEO could not act in that position,” Nyama said
Nyama said the feedback they received was that there were issues of performance in the regions and the CEO had wanted to address those issues.
Letsoalo, who was at the meeting, confirmed that he held the claims officer position in an acting capacity while he was the CEO.
“The board was aware absolutely,” he said.
“In fact they must give you my assessment of the previous board and this chair and the previous chair. It is one of the reasons for my performance being at that level,” he told the MPs.
He confirmed that there were problems in the various regions.
Letsoalo insisted that they had gone to the market for the position twice.
“They knew and they were aware and told my decision and they agreed with my decision. We were supposed to fill that position but went two times but not did get the right person,” he said.
Letsoalo said his reward for holding two positions came in the form of his bonus.
