State capture haunts RAF

Acting CIO: Suspended as CEO launches legal bid to overturn his

- Roy Cokayne

The Road Accident Fund (RAF) board placed its acting chief investment officer (CIO), Sefotle Modiba, on precautionary suspension following allegations that parliament's standing committee on public accounts (Scopa) was given misinformation about Modiba's departure from the City of Joburg.

It has also emerged that RAF CEO Collins Letsoalo has lodged an urgent high court application to review and set aside last week's decision by the fund's board to suspend him with immediate effect for insubordination for defying a board instruction for him to attend a Scopa meeting on 28 May.

Letsoalo is alleging the decision is unlawful, irrational, and unreasonable and is requesting the court to order his immediate reinstatement as CEO.

The application is scheduled to be heard next week.

RAF board deputy chair Nomonde Mabuya-Moloele confirmed to parliament's portfolio committee on transport that the board had recommended at a special meeting last Monday (9 June) to rescind a decision to place Letsoalo on special leave and to then place him on suspension.

Mabuya-Moloele also confirmed Modiba had been placed on precautionary suspension with full pay and benefits with immediate effect. This is due to concerns regarding his previous employment at the city and other matters that are currently under investigation.

Charges 'were dropped' Scopa member Patrick Atkinson of the DA said during last month's meeting a letter was sent to the committee by Vuyo Manisi Attorneys on behalf of Modiba stating:

The city decided to withdraw all charges of misconduct against Modiba;

There was a mutual separation agreement between the city and Modiba; and

All of what is stated in the letter is well documented and backed up by concrete evidence that their client, Modiba, did not leave the city with any charges hanging over his head.