Latest news with #MakhosiniMsibi
The Citizen
2 days ago
- Business
- The Citizen
RTMC CEO's suspension due to host of serious whistleblower allegations
Makhosini Msibi's contract said to have been irregularly extended and RTMC is in a dire financial state because of 'financial decisions he personally took'. A disturbing pattern is said to have emerged under Makhosini Msibi's watch. Picture: GCIS A host of serious allegations by a whistleblower against the Road Traffic Management Corporation (RTMC) CEO Advocate Makhosini Msibi led to him being placed on precautionary suspension effective from 1 July 2025. Moneyweb is in possession of four emails sent to the Public Protector by the whistleblower between 7 June 2025 and 1 July 2025 containing allegations against Msibi. The emails were copied to a number of parties, including the Department of Transport (DoT), parliament's Standing Committee on Public Accounts (Scopa) chair Songezo Zibi and The Presidency. Some contained 'supporting documents', with the whistleblower making a 'formal request for an investigation into financial misconduct, irregular expenditure and governance failures' at the RTMC. They include allegations of financial misconduct, irregular procurement, abuse of authority and governance failures under the leadership of Msibi. ALSO READ: RTMC CEO suspended amid misconduct probe A 'pattern' Eight specific issues were raised, with the whistleblower stressing that these matters reflect 'a pattern of financial mismanagement, executive overreach and disregard for governance principles'. 'I respectfully request that your office initiate a full and independent investigation into the matters raised.' Among the issues raised: Acknowledgement of financial crisis without accountability, with it alleged that Msibi on 31 May 2025 issued a circular to all staff acknowledging the RTMC 'is in a dire financial state, facing severe liquidity constraints and an unsustainable fiscal position'. A letter allegedly issued by the Auditor-General refers to R33.48 million in overspending against the total RTMC adjusted budget. The whistleblower said this admission is accurate but Msibi 'fails to account for the root causes of this crisis, which are directly linked to a series of financial decisions he personally took – often against the explicit recommendations of the Chief Financial Officer (CFO)'. Irregular CEO contract extension and misuse of state resources, with it alleged that Msibi's contract extension is non-compliant with the RTMC Act and did not involve a public advertisement of the post or include the required concurrence from the minister of finance, with these omissions rendering the extension procedurally irregular and potentially unlawful. ALSO READ: RTMC board on board with contract extension? The whistleblower claims the justification provided by the RTMC board for Msibi's contract extension was that it was necessary to ensure 'stability in management' ahead of national elections. However, this reason 'does not meet the standard for lawful deviation from statutory requirements' and 'this rationale sets a dangerous precedent and appears to be a clear abuse of authority and process'. A further claim is that Msibi's contract extension does not entitle him to the use of a company vehicle. Yet Msibi allegedly continues to unlawfully use a state-owned vehicle in direct contravention of this. 'This constitutes a misuse of public assets and a breach of ethical governance principles,' the whistleblower states. 'This matter warrants urgent investigation, as it reflects continued disregard for governance frameworks and a pattern of executive overreach.' ALSO READ: Additional allegations Some of the other allegations made by the whistleblower relate to: Procurement of mobile vehicle testing stations (MVTS) for the Western Cape, which was allegedly approved by Msibi at a cost of about R25 million despite the CFO's clear written objection due to lack of budget, resulting in concerns about a possible undisclosed relationship between Msibi and the MVTS supplier. The approval of salary adjustments for more than 250 traffic officers at a cost of about R22 million, which was allegedly not recommended by the CFO because of affordability concerns but overruled by Msibi. The unbudgeted relocation of the RTMC to new offices before December 2024 at a cost of R47 million, including setup and furnishing costs, when this expenditure was allegedly not included in the approved budget. Minister of Transport Barbara Creecy confirmed on Friday morning during an exclusive one-on-one interview with Moneyweb that Msibi has been suspended. She says the RTMC board told her it had received allegations against Msibi that it is investigating. ALSO READ: Outa highlights widespread fraud at vehicle roadworthiness testing stations Hastily prepared announcement Follow-up questions about Msibi's suspension by Moneyweb to the Transport Ministry and RTMC on Friday resulted in both parties hastily issuing a general media statement shortly before 3.30pm – a few hours after Creecy's confirmation of Msibi's suspension to Moneyweb – instead of responding directly Moneyweb. It is believed the Transport Ministry wanted to avoid a media outlet being the first to disclose Msibi's suspension. The DoT said in its statement the RTMC board indicated in its letter to the Transport Ministry that it took the decision to suspend Msibi following whistleblowing allegations of financial misconduct, irregular expenditure and governance failures at the entity. 'Based on the seriousness of the allegations, the board has taken a decision to institute a forensic investigation into these allegations,' it said. The DoT said Msibi will be on precautionary suspension for a period of 30 days, extendable to 60 days, or any further period as may be reasonably necessary. Refilwe Mongale has been appointed Interim RTMC CEO with effect from 1 July 2025 until further notice 'to ensure continuity and stability within the RTMC while the forensic investigation is underway'. ALSO READ: Outa: Public misled about driving licence card validity Why the delay in announcing Msibi's suspension? There was a lack of transparency up until Friday about Msibi's suspension, which is in stark contrast to, for instance, the way the Road Accident Fund (RAF) CEO Collins Letsoalo's suspension was announced. The DoT statement said Deputy Minister of Transport Mkhuleko Hlengwa was officially informed of Msibi's precautionary suspension by the RTMC Board following a board meeting held on 13 June 2025, with Msibi's precautionary suspension coming into effect on 1 July 2025. Msibi's suspension was announced 11 days after the effective date. In the RAF case, public announcements were made by the Transport Ministry within hours of a RAF board decision about Letsoalo being placed on special leave and subsequently when the RAF board rescinded that decision and suspended Letsoalo for insubordination because of his alleged refusal to attend a meeting of Scopa. ALSO READ: RTMC condemns corruption, calls for tougher sentences Where there's smoke … Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenage says the RTMC would not have suspended Msibi unless the allegations against him were sufficiently substantiated to warrant his suspension. He says the RTMC had members on the bid adjudication committee for the new driving licence card machine – adding that Outa could clearly see there was wrongdoing, yet the RTMC did not. The Auditor-General earlier this year found that the award of a tender worth R898 million by the Driving Licence Card Account (DLCA) to IDEMIA Identity and Security South Africa for the production of the new driving licence card was irregular. This led to Creecy instructing the DoT to lodge a high court application for a declaratory order on how to proceed with the tender given the AG's audit report. This article was republished from Moneyweb. Read the original here.
The Herald
4 days ago
- Business
- The Herald
RTMC board suspends CEO Makhosini Msibi
The board of the Road Traffic Management Corporation (RTMC) has placed its CEO, advocate Makhosini Msibi, on suspension after allegations of financial misconduct, irregular expenditure and governance failures at the entity. Deputy minister of transport Mkhuleko Hlengwa said in a statement the board has officially informed him of Msibi's precautionary suspension after a board meeting held on June 13. The suspension came into effect on July 1. Spokesperson for the department of transport Collen Msibi said in its letter to the ministry, the board had indicated it took this decision after whistle-blowing allegations of financial misconduct, irregular expenditure and governance failures at the entity and that based on the seriousness of the allegations, the board has taken a decision to institute a forensic investigation into these allegations. 'The CEO will be on precautionary suspension for a period of 30 days, extendable to 60 days or any further period as may be reasonably necessary,' Msibi said. 'The board has also advised the ministry of the appointment of Ms Refilwe Mongale as an interim CEO, with effect from July 1 until further notice to ensure continuity and stability within the RTMC while the forensic investigation is under way.' TimesLIVE
The Citizen
5 days ago
- Business
- The Citizen
RTMC CEO suspended amid misconduct probe
RTMC CEO's suspension comes after reports of irregular expenditure and a R3.9m bonus triggered governance concerns. Advocate Makhosini Msibi (RTMC CEO) during the Road Traffic Management Corporation (RTMC) launch of a ground breaking public-private-partnership with WeBuyCars at WeBuyCars Dome on August 22, 2023 in Johannesburg, South Africa. (Photo by Gallo Images/Fani Mahuntsi) The Road Traffic Management Corporation (RTMC) board has suspended CEO Adv. Makhosini Msibi for 30 days after allegations of financial misconduct and governance lapses surfaced. The Department of Transport announced on Friday that Deputy Minister of Transport Mkhuleko Hlengwa was informed of Msibi's precautionary suspension by the RTMC board of directors following a board meeting on 13 June. Msibi's suspension took effect on 1 July 2025. He will remain suspended for 30 days with the possibility of an extension to 60 days or longer if necessary. RTMC CEO suspended following whistleblower claims 'In its letter to the ministry, the board indicated that it took this decision following whistleblowing allegations of financial misconduct, irregular expenditure and governance failures at the entity,' the department said. 'Based on the seriousness of the allegations, the board has taken a decision to institute a forensic investigation into these allegations.' Refilwe Mongale has been appointed as interim CEO until further notice to ensure continuity and stability with the corporation while the forensic investigation is underway. ALSO READ: Corrupt KZN driving licence duo convicted 'It's quite a lot of allegations that have been made, but I suppose the board is moving on the basis of presumption of innocence [until] proven guilty,' department spokesperson Collen Msibi said in an interview with eNCA. The board appointed Msibi as CEO in 2003 and, last year, awarded him a R3.9 million performance bonus. The spokesperson confirmed that the bonus was one of the issues under scrutiny. R3.9m bonus under scrutiny 'I suppose the board will have to look into that and also the issue of governance. It also relates to how the board managed to oversee all this under their watch,' he said. He added that Minister of Transport Barbara Creecy is focusing on clean governance, and she is supportive of investigations that lead to this outcome. 'We also don't want to judge people that they are already guilty when the investigations are not even completed,' the spokesperson said. NOW READ: 13 killed, scores injured in Mpumalanga and KZN accidents
