RTMC: DA welcomes tabling of ministerial task team

The Democratic Alliance (DA) welcomes the tabling of the long-awaited Ministerial Task Team report into the financial and management irregularities at the Road Traffic Management Corporation (RTMC) in Parliament yesterday. The irregularities were first brought to the attention of the Minister of Transport by the DA in July last year, following which the former CEO of the RTMC, Ranthoko Rakgoale, was suspended and the Ministerial Task Team appointed to investigate.

While the DA welcomes the steps taken by the Department of Transport to restore good governance at the RTMC, it appears that the transport entity may still be plagued by the same problems. According to a letter sent to the DA by concerned RTMC staff, it is business as usual with irregular purchases, unapproved overseas trips and new staff recruitments all taking place without a Board to sanction or approve these. The DA will call for the current Acting CEO of the RTMC, Collins Letsoalo, to appear before Parliament to account for these allegations and will call for a further forensic investigation should he fail to provide adequate clarification of these matters.

Furthermore, according to a Labour Court judgment, the suspension of the former CEO, Ranthoko Rakgoale, is unlawful on the basis that the correct procedure was not followed when he was dismissed. The RTMC Act requires that the dismissal is effected by the Minister and the RTMC's Shareholders Committee. Rakgoale was, however, suspended by the Director-General of the Department of Transport in contravention of this requirement.

Indications are that Rakgoale will call for his reinstatement and challenge his dismissal on appeal. Should his appeal succeed, the Department's failure to follow the correct procedure could result in further costs being incurred by the already embattled RTMC.

The DA will write to the Minister of Transport to request that he raise these issues and call an emergency meeting of the RTMC's Shareholders Committee to consider:

• The appointment of a human resource or labour law specialist to intervene and resolve all appointments, suspensions and dismissals
• Laying charges, where applicable, in cases where criminal activity was perpetrated by both staff and providers
• Investigating the role of the Board in their non-compliance with fiduciary duty and good governance
• Immediately advertising for applications for a new Board, and make the necessary appointments
• Putting in place a funding strategy that will ensure that the RTMC's role in the Arrive Alive Road Safety Programme is fulfilled over the holiday period with a view to saving lives
• Investigating the future role of the RTMC in the country-wide roll out of AARTO and the demerit system

Statement issued by Staurt Farrow, MP, Democratic Alliance Shadow Minister of Transport, November 17 2010

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