MINISTER NDEBELE ON REPORT INTO ALLEGATIONS OF MISMANAGEMENT AT RTMC

Transport Minister Sibusiso Ndebele appointed an independent Task Team on 8 February 2010 to investigate allegations of mismanagement at the Road Traffic Management Corporation (RTMC).

The Task Team, chaired by Mrs. Riah Phiyega (a past Group Executive for Absa Bank Limited as well as Transnet), presented its report to Minister Ndebele in Pretoria earlier today (Tuesday, 27 July 2010). Key findings of the Task Team include irregular expenditure, inappropriate procurement procedures and unauthorized use of eNaTIS transaction fees.

Minister Ndebele will study the report as well as the recommendations, which will be presented at the next RTMC Shareholder's Committee meeting scheduled for next month (August 2010). Further pronouncements on this matter will be made in due course.

"The Department of Transport has adopted a zero tolerance stance when it comes to fraud, corruption and mismanagement. Any person found guilty of such acts must face the consequences of their actions. The RTMC was established for co-operative and coordinated strategic planning in respect of road traffic matters by the national, provincial and local spheres of government. It is therefore of paramount importance that this agency functions effectively and efficiently to fulfill its mandate," said Minister Ndebele.

Over the past year, Minister Ndebele received various complaints relating to allegations of mismanagement at the RTMC under CEO Mr. Ranthoko Rakgoale. These allegations were brought to the attention of the RTMC Board and the Minister ordered an investigation into the allegations.

On 5 February 2010, the Minister further announced a decision to appoint an independent Task Team to investigate the allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC.

Mr. Rakgoale was subsequently suspended and Mr. Collins Letsoalo, Deputy Director-General: Financial Services at the Department of Transport, was appointed acting CEO.

Statement issued by Logan Maistry, Ministry of Transport, July 27 2010

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