RTMC mismanagement report to be tabled

Monday, November 15, 2010

Pretoria - A report into allegations of mismanagement at the Road Traffic Management Corporation (RTMC) is expected to be tabled in Parliament on Tuesday by Transport Minister Sibusiso Ndebele.

The report follows an investigation by an independent task team appointed by Ndebele in February to investigate allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC.

The allegations of mismanagement had led to the suspension of CEO Ranthoko Rakgoale and several other staff.

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 ten 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.

The forensic audit process is still underway and the results will be actioned by the acting CEO of the RTMC.

In a statement, Ndebele warned that those found guilty of such offences were liable on conviction to a fine, dismissal or imprisonment. "The department has adopted a zero tolerance stance when it comes to fraud, corruption and mismanagement, any person found guilty of such acts must face the consequences of their actions," he said.

He noted that with the appointment of the acting CEO, the functioning of the RTMC had stabilised substantially and the RTMC was on track to deliver on its mandate of safer roads in South Africa.

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 coordinated 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 fulfill its mandate," Ndebele said.

Deputy Director General: Financial Services at the Department of Transport, Collins Letsoalo, has been appointed acting CEO of the RTMC.

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