17 November 2010 | Angeline Albert

The CEO of South African government agency the Road Traffic Management Corporation (RTMC) has been suspended following an internal investigation into procurement failings.     

On 16 November, transport minister Sibusiso Ndebele told the government’s Portfolio Committee on Transport that his department was finalising a disciplinary inquiry into several employees of the RTMC who are implicated in charges of corruption and inappropriate procurement procedures. This includes CEO Ranthoko Rakgoale.

Ndebele ordered the probe after complaints from staff, whistle-blowers and other sources relating to allegations of mismanagement at the RTMC under Rakgoale.  

A preliminary report found evidence of irregular expenditure estimated at R144 million ($20.4 million) and inappropriate procurement procedures.

“Based on the recommendations of the report, several staff at the RTMC have been suspended. The disciplinary inquiry is in the process of being finalised,” Ndebele said.

Collins Letsoalo, deputy director-general of financial services at the Department of Transport, was appointed acting CEO after the initial report. His work has already resulted in better monitoring services, improved control over supplies; a reduction in wasteful spending, control over finances and a reduction in irregular expenditure, the minister said.

Ndebele added: “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 South Africa. The issues raised in the report are being dealt with and some of the recommendations have already been implemented.”