Collins Letsoalo, the former CEO of the Road Accident Fund (RAF), has disappeared amidst an ongoing investigation regarding severe governance failures at the state-owned entity.
The probe into the RAF’s dealings in recent years has exposed several instances of gross mismanagement and questionable use of taxpayer funds, leading to the suspension of Letsoalo and other high-ranking officials.
Letsoalo is required to appear before parliament to explain his role regarding the major governance failures at the RAF; however, he has dropped off the map.
Speaking to the SABC on Tuesday, 17 November 2025, Standing Committee on Pubic Accounts (SCOPA) chair Songezo Zibi confirmed that they have attempted to serve Letsoalo with a subpoena, but that he did not respond.
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.
Parliament will lay criminal charges for defying a summons, an offence that could lead to prison time.
The investigation found that Letsoalo had spent roughly R23 million on personal security, including hotel stays for his bodyguards.
In a previous statement, he denied any wrongdoing, labelling the probe “a witch-hunt by lawyers and the media.”
Exposing the Road Accident Fund
The inquiry has highlighted deep-rooted governance failures at the RAF, an entity that is funded by a tax placed on every litre of fuel sold in South Africa.
The RAF Levy, which adds R2.18 to the cost of petrol, generates R48 billion for the Fund annually, yet the entity has been in dire financial straits for years.
The RAF board recently placed its acting CEO, CFO, Chief Governance Officer, and the head of the CEO’s office on precautionary suspension.
One of the most concerning revelations uncovered by the investigation is that the Fund changed its accounting policy without any recorded executive meeting or board approval, a decision that affected approximately 500,000 claimants.
Suppliers were consulted and preparations were made before the RAF’s own governance structures had even discussed the decision, reported Newsday.
SCOPA also learned that the RAF outsourced nearly R1 billion in procurement to two external companies, each of which received R500 million.
Despite this enormous sum, the entity did not examine or question any of the spending which, among other things, included an invoice for a R48,300 bucket hat.
The lack of oversight at the RAF allegedly allowed suppliers to procure from relatives and friends at greatly inflated prices.
All of this is on top of the Fund’s questionable operating methods, which have racked up hundreds of millions of rands in legal bills.
The RAF has been heavily criticized in recent years for its overuse of lengthy court proceedings to resolve claim disputes.
It has spent over R100 million on disciplinary cases over the past five years, often using external lawyers who charged by the hour.
Additionally, many employees have remained on suspension for up to four years without being charged, even while acting staff filled their positions.
This effectively led to the RAF doubling salary costs for many of its positions.
SCOPA also heard that the Fund’s decision to dismiss its panel of attorney’s resulted in thousands of unattended court cases.
Its remaining attorneys are each handling up to 5,000 cases right now, forcing them to appear in multiple courts simultaneously.
When they can’t, the RAF either pays the full cost for a postponement or takes a hit from a default judgement, adding billions to its liabilities.
SCOPA stated that it has put measures in place to protect witnesses due to concerns of intimidation tactics.
It is allowing key individuals to testify anonymously via virtual appearance, using pseudonyms with verification by Home Affairs and the SIU.
The committee will continue its hearings this week, with or without Letsoalo.
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