The former CEO of the Road Accident Fund (RAF), Collins Letsoalo, was paid R9.8 million in the 2025 financial year, including a bonus of nearly R3 million.
This was revealed in the RAF’s 2025 annual report, which showed that Letsoala’s pay package included a basic salary of R7.066 million, as well as a performance bonus of R2.773 million.
This comes after the former CEO was suspended from the state-owned entity and refused to appear before an official parliamentary inquiry – something he could potentially face criminal charges over.
The RAF, which is funded by fuel taxes, justified Letsoalo’s salary by claiming it was market-related and kept at levels that will assist in retaining and attracting key leadership skills.
However, the RAF has been in dire financial straits for years and is technically insolvent, as its total liabilities are estimated at R41.862 billion while its total assets are only valued at R14.150 billion, reported Newsday.
In other words, the state entity is R27.712 billion in the red.
While the RAF has been grappling with its dismal financial situation, Letsoalo has been embroiled in serious controversies regarding his tenure as CEO.
He no longer holds a leading position at the Road Accident Fund, as he was placed on special leave in May 2025, which was followed by a formal suspension in June.
Letsoalo and other high-ranking members of the RAF were suspended following a government investigation that exposed several instances of gross mismanagement and the questionable use of taxpayer funds.
The former CEO was required to appear before parliament to explain his role in governance failures at the RAF, but failed to do so.
For a short period, Collins seemingly dropped off the map, with Standing Committee on Pubic Accounts (SCOPA) chair Songezo Zibi telling the SABC that he did not respond to the subpoena.
When the authorities attempted to track him down, they found that the address he previously used to communicate with parliament was abandoned.
The sheriff found the house was completely empty with no furniture, an overgrown lawn, and other signs that clearly indicated no one had lived there “for a while.”
MPs investigated a second address linked to Letsoalo, which was also abandoned.
Collins did reappear soon after claiming that the reports of his disappearance were exaggerated; however, he still refused to appear before parliament.
He previously challenged his suspension in the High Court, but his application was dismissed in June 2025.
In August 2025, Minister of Transport Barbara Creecy confirmed that his contract has expired and that he was officially gone.
Letsoala was issued a summon to appear before SCOPA on 25 November 2025, but he ignored it.
Instead, he appeared on the SABC’s Face the Nation to announce that he would refuse to respond to the summons.
“I am not going to that kangaroo court, where Songezo Zibi is the Chairperson, evidence leader, interrogator, witness elector, and adjudicator in one,” he said.
As of February 2026, he has still not appeared before SCOPA, which has concluded its investigation without Letsoalo’s testimony.
The former CEO could still face criminal charges for defying a summons, an offence that could lead to prison time.
Road Accident Fund’s financial woes
The RAF is a state-run social security fund intended to provide cover to all road users affected by motor vehicle accidents in South Africa.
Its primary function is to compensate persons involved in road accidents for their injuries and any potential loss of income arising from said injuries.
It is funded by the Road Accident Levy, which is one of two main taxes placed on every litre of petrol and diesel sold in South Africa.
Even though it generates approximately R48 billion in annual revenue, the entity is on its last legs due to years of mismanagement and questionable legal tactics.
The RAF, which currently has more than 255,487 outstanding claims, often falls back on the courts to dispute claims, racking up millions of rands in legal fees while drawing out the time it takes to resolve the claim.
The entity has also faced several allegations of widespread fraud, mismanagement, and corruption, including overpricing for services and procurement irregularities.
It also has a history of poor record-keeping, non-responsiveness of consultants, and delays in processing claims.
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