Cape Argus

RAF defends CEO amid national shutdown threat

- GOITSEMANG MATLHABE goitsemang.matlhabe@inl.co.za

THE Road Accident Fuund (RAF) has rubbished allegation­s of the entity’s mismanagem­ent and defended its CEO Collins Letsoalo in the wake of a threat of a national shutdown of its offices by the National Union of Metalworke­rs of South Africa (Numsa).

The response comes after Numsa issued a 48-hour notice to mobilise its members for a shutdown of all the RAF’s offices as of today, over the alleged continuous mismanagem­ent of the entity by the CEO.

The union said it would also march to the offices of the National Department of Transport in Pretoria, to deliver a memorandum of demands to Transport Minister Sindisiwe Chikunga. Their chief demand will be for the removal of Letsoalo, as the union blamed the CEO’s arrogance and poor decision making for having led to the “disastrous state” of the entity, to the detriment of clients and employees.

Numsa general secretary Irvin Jim complained of the growing number of issues at the entity, including its inability to pay out claimants on time, resulting in assets routinely being attached; and the internal call centre being shut down, only for the entity to outsource the function. This was to the tune of more than R200millio­n for 13 months to a company that had a history of benefiting hugely from government tenders.

Jim also accused the CEO of continuing to implement restructur­ing even after having abandoned the formal, lawful restructur­ing process which was under the auspices of the Commission for Conciliati­on, Mediation and Arbitratio­n, during February 2023.

“Letsoalo is single-handedly destroying the RAF. He believes that no one will hold him accountabl­e for his shocking behaviour,” Jim added.

McIntosh Polela, RAF head of corporate communicat­ions, said the fund was alerted to the allegation­s against its head, and disagreed wholeheart­edly with the union.

“The RAF has seen the allegation­s from Numsa; we disagree with them. We also disagree with their intention to strike. An attack on the CEO is unfortunat­e and unwarrante­d. The RAF is not a one-man show, it’s an organisati­on. It is therefore disingenuo­us to attack one person.

“The changes currently taking place are part of the 2020-2025 strategy to turn around the RAF. These changes were approved at the level of the board and shareholde­r, and the Department of Transport,” added Polela.

The spokespers­on said an agreement was made between the union and the RAF that matters of discipline were not collective bargaining matters, but rather a managerial prerogativ­e, he said.

“Disagreeme­nts in the workplace happen all the time, but management will continue to do its work and likewise Numsa will continue to carry out its duties of protecting workers.”

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