Collins Letsoalo's urgent plea for reinstatement amid life-threatening concerns
Image: Supplied
Suspended Road Accident Fund (RAF) chief executive Collins Letsoalo has launched an urgent 'life and death' high court application challenging the troubled entity's board, demanding reinstatement and stopping the advertising of his position.
In papers filed at the Gauteng High Court, Pretoria, on Friday, Letsoalo seeks an order declaring that the RAF Board's decision to suspend him earlier this week be set aside as it was unlawful, irrational, and unreasonable.
He wants to immediately resume his duties as the fund's boss.
He also wants to interdict and restrain the RAF and its board from advertising the position of chief executive pending the finalisation of the process to re-appoint him to the position.
Letsoalo has been RAF chief executive since 2020, with his five-year contract due to end on August 6, but the board has resolved to renew his fixed-term contract upon its expiry.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
In addition to wanting to return to work, he has also asked the high court to ensure that he keeps his security detail.
'As part of my fringe benefits relating to security, I am provided by the first respondent (RAF) with security vehicles and security personnel. There have been threats made to my life during the course of my employment as the chief executive of the RAF.
'The threats come from various sectors, chief among them from the taxi industry. There was a high-risk assessment conducted on me. I have security guards placed at my house,' Letsoalo stated in his founding affidavit.
He fears for his safety and that of his family, and he is also entitled to R480,000 a year security. Among the conditions of his suspension is that he return all the RAF property in his possession, including the provision of security.
'There is no doubt that this is a matter of life and death, and I cannot wait any longer and need urgent relief now and not later. A grave injustice will befall me or my family if the urgent relief is not granted, especially when the news of my suspension has been widely circulated in print media, television, and social media,' explained Letsoalo.
He added that the risk of harm was real, as if he returned security vehicles and personnel, he and his family would be left without protection and placed in harm's way.
Letsoalo also detailed an incident of his life being targeted.
'Last year, a group of heavily armed men arrived at our offices in Centurion demanding to see me. They tied the security personnel with ropes. It was the day we were having a board meeting, and fortunately, the board meeting was online and not at the office,' he explained.
A case was opened with the police, and Letsoalo revealed that it later transpired that the individuals were sent by someone in prison to harm him.
He undertook to provide the judge presiding over his urgent application with a case number.
'After that incident, the crime intelligence branch of the SA Police Service advised the first respondent (RAF) to beef up my security. The reason why I was provided with security vehicles was that last year, there was an attempt on my life coming from the taxi industry,' he said.
Letsoalo was placed on special leave on May 27, but this was withdrawn on Tuesday, June 3, when he was suspended.
He indicated that should his application not be heard urgently, it would be delayed for months, and in that time, his employment contract expires in August, and his potential re-employment with the concurrence of Transport Minister Barbara Creecy and Cabinet's approval would in all probability not happen.
'I disavow any reliance on Section 186(2) of the Labour Relations Act as amended, as I do not claim that my suspension was unfair, hence I do not approach the Commission for Conciliation, Mediation and Arbitration. I do not claim the conduct of the respondents (RAF and its board) constitutes unfair labour practice,' he explained.
However, Letsoalo categorically and unambiguously stated that his case is that his suspension was unlawful, irrational, and unreasonable.
In the period leading up to his suspension, he described Board Chairperson Lorraine Francis as confrontational, accusing him of changing his tune about attending meeting of the National Assembly's Standing Committee on Public Accounts (Scopa) and indicating that he must take leave to clear his mind and think about issues as he had been under extreme pressure, which she stated was compassionate leave.
Letsoalo said he refused to take compassionate leave after Francis stated that the board was worried he was taking instructions from his lawyers and wanted him to choose.
'I felt aggrieved that I had to learn about my suspension during the proceedings of the portfolio committee (Scopa) meeting. While I was watching the proceedings of the portfolio committee, I received an SMS from the chairperson of the board, who did not attend the portfolio committee meeting on the allegation that she was attending a prior personal matter,' he said.
Letsoalo added that Francis also told him to check his e-mails and found the letter informing him of his suspension and withdrawing the earlier special leave.
The suspension was allegedly due to adverse findings made by the Special Investigating Unit (SIU), which he said has been ongoing since 2022.
Letsoalo complained that the SIU never gave him a right of reply before presenting its preliminary findings before Parliament.
'If the board felt so strongly about my alleged refusal to attend the Scopa meeting, why could they not use the reason for my refusal to attend the Scopa meeting as a reason for my special leave?' he asked.
Letsoalo accused the board of damaging his reputation and integrity and believes that after the board received legal opinion that his special leave was legally suspension, they hastily looked for a reason to suspend him.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
17 hours ago
- eNCA
Former EOH director fined R500k for faking PhD
PRETORIA - The Johannesburg Stock Exchange (JSE) has fined former EOH director Anushka Bogdanov R500,000 for misrepresenting her academic qualifications. Bogdanov falsely claimed to have a PhD from the London Business School. As a result, she has also been banned from serving on the boards of JSE-listed companies for the next 10 years. Dr Esewu Mathebula, from the South African Association of PhDs, says they are working to collaborate with law enforcement to root out this kind of misconduct.
IOL News
18 hours ago
- IOL News
Silent spending is draining South African households: Here's where your money is really going
South African consumers are being hit with silent charges, like subscription renewals and small bank fees, that often go unnoticed but cost thousands over time. Image: File A growing number of middle-class South African households are discovering that their biggest financial threat isn't load shedding, high inflation, or rising food prices, but their silent spending habits. A recent audit of diverse households has revealed how small, recurring expenses like app subscriptions, impulse buys, and overlooked bank fees are collectively costing families thousands of rands each year. Experts warn that many of these hidden drains are going unnoticed due to the 'set and forget' nature of modern consumer habits, especially with the increasing use of digital payment systems and auto-renewing services. Take the case of a young couple living in Cape Town. Without realising it, they were spending more than R450 each month on digital subscriptions, most of which they rarely used. 'It was shocking to see how many platforms we were paying for,' they said. 'We had Netflix, Apple Music, two meditation apps, and backup storage services we hadn't looked at in months.' Once they reviewed their bank statements and cancelled unnecessary services, they saved close to R4,000 over the course of the year. But streaming services weren't the only culprit. 'We found we were spending over R2,000 a month on coffee and lunch runs,' they said. 'It doesn't feel like a lot when it's R50 here or R80 there, but when you add it up, it's ridiculous.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading A high school teacher said impulse grocery trips and unplanned takeaways had become a coping mechanism for her family. 'We'd get home tired and just order food or pop into the store without a list. We were often over budget without understanding why.' The family was exceeding their monthly food budget by more than R1,100 on average. Recurring bank fees and overdraft penalties were quietly eroding their disposable income. 'We switched banks, set app alerts, and created a budget for once-off annual costs like school uniforms and birthdays. That alone gave us breathing room,' she explained. One of the biggest revelations to emerge comes from Bank Zero CEO Yatin Narsai, who raised concerns about how South Africans are being charged 'international payment' fees for rand-priced subscription services like Netflix, Spotify, YouTube, Apple TV+, and Amazon Prime. Narsai said that while these services appear to be billed in rands, many South African banks charge a cross-border transaction fee, ranging between 2% and 2.75% of the transaction value, or a fixed fee of R3.00 in the case of banks like Capitec and TymeBank. 'Bank Zero still follows the principle of not charging fees wherever possible,' Narsai said. 'Only if a third party charges us a big fee, like for cash or immediate payments, are we forced to also charge a fee to the customer.' 'No such large extra fees exist specifically on cross-border rand-based card transactions,' he added. The implication? Banks may be profiting from fees that don't reflect actual processing costs. And for many middle-class families who maintain multiple international subscriptions, these seemingly minor charges can quietly erode their disposable income. A 2024 study by the South African Savings Institute found that 62% of middle-income earners struggle to save consistently, with the majority citing 'unexpected' or 'forgotten' costs as a key obstacle. Yet most of these expenses, according to the data, could be identified and reduced through regular financial audits. Digital tools are increasingly stepping in to assist. Budgeting apps like 22seven, YNAB, and bank-integrated platforms such as FNB's Smart Budget tool offer real-time expense categorisation and alerts. These platforms can also highlight unused subscriptions, spikes in discretionary spending, or unusual bank charges. For some households, switching to cash-only weeks or setting limits on contactless transactions helped curb their spending impulses. Others set up 'future expense' savings pots, monthly amounts reserved for school fees, birthdays, or holiday costs, to avoid surprises later in the year. What should South Africans do now? Financial advisors recommend: Quarterly financial audits, carefully review bank and card statements. Switching accounts, look for banks or digital wallets with flat-fee or no-fee structures, especially on international payments. Cancel or reduce subscriptions and opt for annual plans where cheaper. Track small spending, daily coffee, snacks, or impulse buys add up fast. While headline costs grab attention, it's the compact, often-overlooked drains, card fees, cash handling, and subscription costs, that quietly erode personal and business wealth. IOL News
Daily Maverick
3 days ago
- Daily Maverick
The Financial Wellness Coach: How to cut estate duty and avoid heavy tax
Although it may seem like a good idea to transfer assets before death to reduce estate duty, doing so can actually result in higher tax costs. Question: My father is a widower and has just been diagnosed with cancer. The prognosis is not good and I'm helping him to tidy up his affairs to make the inheritance process easier. I am his only child. His assets consist of a house worth R4-million and various share investments worth R8-million. To reduce his estate duty bill, we are thinking of transferring the house to his only grandchild while he is still alive. advertisement Don't want to see this? Remove ads Does this make sense? Are there any other factors we should consider? Answer: Although it may seem like a good idea to transfer assets before death to reduce estate duty, doing so can actually result in higher tax costs during your father's lifetime. This is because of: • Immediate payment of capital gains tax (CGT) If your father transfers the house to his grandchild now, he will trigger a CGT event. He will need to pay tax on the growth in value of the property from when he bought it until the date of transfer. This could be substantial, especially if the house has appreciated significantly. • Donations tax Donating the house (valued at R4-million) to the grandchild will also trigger donations tax at 20% on the value above the R100,000 annual exemption. This means that your father will have to pay donations tax of R780,000. • Transfer costs The transfer will also incur costs such as conveyancing attorney fees, deeds office charges and transfer duty. As you can see, this approach would result in a high immediate tax burden (CGT plus donations tax plus fees) without actually reducing the tax payable, as donations tax is charged at the same rate as estate duty (20%). Additionally, the value of these taxes is paid during your father's lifetime, thereby reducing the capital available for investment and growth. advertisement Don't want to see this? Remove ads Alternative strategy An alternative solution that is worth considering is the following: Your father's estate is worth R12-million. He will get the R7-million estate duty abatement. This means that R5-million of his estate would be dutiable, which, at a rate of 20%, means that he would be paying R1-million in estate duty. One of the few options is to make use of disallowed retirement contributions. In short, if you buy a retirement annuity (RA) that is worth more than the lesser of R350,000 or 27.5% of your taxable income, the excess contributions are classed as disallowed contributions. If you buy a living annuity with that money and your beneficiaries elect to receive the proceeds of the annuity when you die, this amount will not trigger estate duty. Consider this scenario Your father buys an RA for R5-million (which is above the allowable deduction threshold); The excess contributions are classified as disallowed for tax purposes; He then converts this RA into a living annuity; and If your child (his grandchild) is listed as the beneficiary of the living annuity and chooses to receive the benefit as an income stream, no estate duty will be payable on this amount upon your father's death. This will result in the following: A saving of R1-million in estate duty, as the living annuity falls outside the estate for estate duty purposes; A saving of R200,000 in executor fees, as the living annuity has a beneficiary and need not be dealt with by the executor; The income paid to your child will be taxable in their hands, but since they will probably have little to no income while still young, the tax will be minimal, if any; and This structure can fund education, living expenses or long-term income. This is a fantastic way for your father's legacy to live on. Although it is never nice to think about death, a bit of planning can make a material difference to the amount of money that leaks from an estate when there is a death. advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads I would strongly recommend that you speak to a suitably qualified professional before implementing any of these ideas, because I'm only seeing part of your financial picture and there may be other factors that need to be taken into account. DM Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at Send your questions to [email protected]. This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
