Legal View

Traffic parastatal report reaches Parliament

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The report into allegations of mismanagement at the Road Traffic Management Corporation (RTMC) will be tabled in Parliament today.

The Government Communication and Information System (GCIS) says transport minister Sibusiso Ndebele will table the report, which is based on an investigation carried out by an independent task team, as per Ndebele's request in February.

The allegations led to the suspension of CEO Ranthoko Rakgoale and other staff members.

The report's key findings include irregular expenditure, inappropriate procurement procedures and unauthorised use of eNatis transaction fees. The task team also discovered an irregular lease agreement of R658 million over a 10-year period. The actual loss on this lease is estimated at R11 million. The lease has since been cancelled.

The total value of confirmed irregular expenditure incurred at the RTMC is estimated at R144 million, with IT-related irregularities of R139 million.

The GCIS says the forensic audit process is still under way and the results will be actioned by the RTMC acting CEO Collins Letsoalo.

Ndebele says with the appointment of the acting CEO, the functioning of the RTMC has stabilised substantially and the RTMC is on track to deliver on its mandate of safer roads in SA.

“The issues raised in the task team report are being dealt with and some of the recommendations have already been implemented.

"The RTMC was established for co-operative and co-ordinated strategic planning in respect of road traffic matters by the national, provincial and local spheres of government. It is, therefore, of paramount importance that this agency functions effectively and efficiently to fulfil its mandate," Ndebele says.

Allegations confirmed

The task team report shows all allegations against the corporation to be true, with only two out of the 17 allegations being partially confirmed, and the rest completely confirmed.

This includes R300 million in electronic National Traffic Information System transaction fees that were used irregularly.

Complaints first arose after a damning independent financial audit, which cost R13.3 million, detailing procurement irregularities and gross financial mismanagement at the RTMC.

The DA said the report revealed several irregularities implicating Rakgoale.

The audit also revealed that over R1.3 million of RTMC funds were 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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