The Democratic Alliance (DA) has called for a probe into the Road Traffic Management Corporation (RTMC), alleging the CEO is guilty of financial mismanagement.
The DA's spokesperson for traffic, Stuart Farrow, has written to the office of the Public Protector, requesting a formal investigation into the conduct of the CEO and other senior officials of the RTMC.
He says an independent financial audit on the company carried out by Deloitte and Touche implicated several officials, including the CEO, “in serious instances of misappropriation, procurement irregularities and gross financial mismanagement”.
The company has defended CEO Ranthoko Rakgoale, saying the issues raised by an independent investigation and the DA have already been dealt with. The traffic body notes that a review of its systems is being carried out, but gives no indication that it plans any disciplinary action.
The RTMC is tasked with the roll-out and facilitation of the Adjudication of Road Traffic Offences Act (Aarto). The company has piloted the new point demerit system in the Tshwane and Johannesburg Metropolitan areas, and is preparing to implement it nationally later this year.
No action
Farrow says the audit cost R13.3 million and had been completed in September 2009, but the department has failed to take any action since then.
According to Farrow, while the audit resulted in a review of the company's systems, no action had been taken against individuals concerned. Farrow claims there is no evidence the matter is being resolved and the Department of Transport is yet to carry out any disciplinary action.
The DA says the report reveals several irregularities implicating Rakgoale. The RTMC's R4.5 million spend on provincial workshops was questioned when only R1.5 million had been budgeted for the purpose. The company also entered into a 10-year, R658 million, lease for nine office blocks, only two of which are being used for a staff component of 144.
The audit also reveals that over R1.3 million of RTMC funds was wasted for the hire of private suites at Ellis Park and Loftus Versfeld during the Confederations Cup. The CEO's purchase of an Audi A4 for personal use, using RTMC funds, was also questioned.
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