RTMC in dire straits: senior staff must be held accountable

Whistleblowers at the RTMC have informed the Democratic Alliance (DA) that the DoT decided not to pay salaries to RTMC staff until the corporation pays over R246-million owed to the DoT for e-Natis transaction fees. RTMC executives have allegedly been using these fees illegally to keep the bankrupt RTMC afloat.

A letter in the DA's possession, from the Department to the RTMC, states it will "...cease to pay salaries on behalf of the RTMC with immediate effect."  As eluded to above, the DA has been informed by whistleblowers that the reason for this is due to the debt owed to the DoT. For a copy of the letter: click here

This revelation comes on the back of the DA's request to the Public Protector last week for a formal investigation into the conduct of the CEO of the RTMC, Mr. Ranthoko Rakgoale, along with other senior officials of the RTMC following allegations of gross financial mismanagement, procurement irregularities and the misappropriation of funds. It serves as yet more proof that the CEO and other senior officials at the RTMC must be suspended pending a full and independent investigation.

According to National Treasury regulations, the RTMC must monitor and collect transaction fees from provincial departments of transport for all annual vehicle licensing transactions. These fees must then be paid over to the Department of Transport, who in turn pay these fees over to Treasury. These e-Natis fees are to be used for, amongst other functions, the development and introduction of learner licensing testing facilities at driving centres and the National Contravention Register which is required for the effective operation and maintenance of the traffic infringements in terms of the Administrative Adjudication of Road Traffic Offences Act (AARTO).

According to a Deloitte and Touche audit report of the RTMC's finances completed in September 2009 the RTMC had not followed up on approximately R93-million owed to it by provincial departments of transport. The debtor provinces had refused to accept responsibility for these debts as they were unable to "...prepare a reconciliation of the amount per their records and the balances per RTMC records..."

Together with the admonition from the DoT and the findings in the audit report this once again provides clear and undisputable grounds that the CEO and other senior officials of the RTMC mismanaged e-Natis transaction fees - money intended for the improvement of South Africa's license testing systems and for the introduction of the AARTO system. The CEO, together with other senior officials must be suspended with immediacy.

The DA will be writing a letter to the Minister of Transport in order to gain clarity on the salary matter and call for an urgent summoning of the RTMC's Shareholders Committee - provincial heads of transport, who have the responsibility, in terms of the RTMC Act, to ensure the proper functioning of the RTMC in the interests of the public.

Statement issued by Stuart Farrow, MP, Democratic Alliance shadow minister of transport, February 5 2010

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