Former Road Accident Fund (RAF) CEO Collins Letsoalo says he will snub a parliamentary committee established to look at the ills of the fund, raising the spectre of a possible arrest.
Letsoalo, through his legal representatives, Sithi & Thabela Attorneys, described the process as unlawful, irrational and beyond the committee’s legal power or authority.
In a letter addressed to standing committee on public accounts (Scopa) chairperson Songezo Zibi, the speaker of the National Assembly and the secretary of parliament, Letsoalo argued that Scopa was exceeding its mandate by summoning him for the hearing.
It said rule 245 of the National Assembly confined Scopa’s mandate to considering financial statements and auditor‑general reports, not conducting broad oversight inquiries.
The lawyers’ letter, seen by Business Day, says the committee has intruded into functions reserved for the portfolio committee on transport and the standing committee on finance. It says that reliance on section 56 of the constitution does not validate an inquiry that is itself unconstitutional.
It also alleges procedural bias, defamatory statements by the chairperson and the unlawful disclosure of Letsoalo’s residential address, warning that urgent high court proceedings would follow if parliament persisted with these transgressions.
Scopa resolved to summon Letsoalo to appear before it in Cape Town on November 25 and 26.
Read: RAF executives tells Scopa vetting was not done
The committee sent its summons to him via email, SMS and through a publication on its social media platforms after unsuccessful attempts by the sheriff of the high court to serve him at the addresses provided.
The summons cites section 56 of the constitution and section 14 of the Powers, Privileges & Immunities of Parliament and Provincial Legislatures Act and warns that failure to appear constitutes a criminal offence punishable by fines or imprisonment.
Scopa’s inquiry has already heard evidence from PwC partners and RAF finance officials that the integrated claims management system remains incomplete, with dual regimes complicating oversight and R30m in claims awaiting approval due to system integration failures.
Witnesses testified that the RAF’s liabilities remained substantial, with more than 101,000 claims processed by October, and that the auditor‑general contested the accounting policy change to international public sector accounting standards.
Members pressed RAF officials on expenditure unrelated to claims processing, including nearly R4m spent on a staff awards function, despite an accumulated deficit of R27bn and liabilities projected to reach R423bn by 2027.
Letsoalo’s testimony was necessary to clarify decisions taken during his tenure, including the cancellation of the panel of attorneys, the creation of a chief investment officer post and the hiring of personal bodyguards.
The summons also required him to account for RAF’s investment practices and the litigation being pursued against the auditor‑general.
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