Pretoria: The Road Traffic Management Corporation (RTMC) has received clean audit reports for two years in a row, acting RTMC chief executive Collins Letsoalo said on Monday.
“As the RTMC, we are proud that for the second year in a row, we’ve got a clean bill of health from the Auditor-General in the form of a clean audit. We believe that this puts us on a very strong base going forward, to ensure that we adhere to our motto of clean governance,” said Letsoalo during a media session in Pretoria.
The RTMC boss, who emphasised that the corporation’s cash crisis days were over, also announced the establishment of the National Anti-Corruption Unit, which was already yielding positive results.
“In the past few weeks, we’ve arrested 15 people, including some of our own officials in KwaZulu-Natal, Mpumalanga and Gauteng … we will be making more arrests.
“… Please bear with us as we [rid] the traffic fraternity of all these corrupt elements that … take bribes, leading to more corruption in the law enforcement industry,” Letsoalo said.
He had a strong warning for those still engaged in corrupt activities.
“… They must be warned to stop with immediate effect or face the full might of the law. As RTMC, we will never tolerate corruption as it undermines our integrity.”
Letsoalo said together with his team, he was working very hard to restore public confidence in the RTMC.
RTMC financial crisis
Three years ago, the RTMC was facing financial difficulties as a result of the mismanagement of finances and gross irregularities that culminated in unauthorised spending of more than R500 million by its previous managers and the board.
In February 2010, former Transport Minister Sibusiso Ndebele appointed an independent task team to investigate allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC.
The CEO, Ranthoko Rakgoale, was placed on special leave and then on suspension, and Letsoalo was appointed acting CEO.
The task team presented its report to Ndebele in 2010, with key findings that included irregular expenditure, inappropriate procurement procedures and unauthorised use of eNaTIS transaction fees.
One of the key findings of the investigation was an irregular lease agreement of R658 million over 10 years, which resulted in an actual loss of R11 million.
According to the task team, the total value of confirmed irregular expenditure actually incurred at the RTMC is currently estimated at R144 million.
Asked about the latest developments regarding the case against Rakgoale, Letsoalo said: “We’ve handed over our forensic report to the police. Although we are no longer in a position to talk more about this matter, we’ve just heard that their investigations are at an advance stage.”