Pretoria - A report on the investigation into allegations of mismanagement at the Road Traffic Management Corporation (RTMC) has revealed that millions of rands have been wasted.
Transport Minister Sibusiso Ndebele appointed an independent task team on 8 February to investigate allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC under former CEO Ranthoko Rakgoale.
Rakgoale was subsequently suspended and Collins Letsoalo, deputy director general: financial services at the Department of Transport, was appointed acting CEO.
The task team presented its report to Ndebele on Tuesday, with key findings that include irregular expenditure, inappropriate procurement procedures and unauthorised use of eNaTIS transaction fees.
One of the key findings of the investigation was an irregular lease agreement of R658 million over 10 years, which resulted in an actual loss of R11 million.
According to the task team, the total value of confirmed irregular expenditure actually incurred at the RTMC is currently estimated at R144 million, said Ndebele.
"Our legal advisors are currently studying the report as well as the recommendations. We want to emphasise that although this task team has completed its task, there are still various matters which require further investigations," he said.
He said such investigations are subject to future decisions through the RMTC Shareholders Committee.
However, further forensic audit process is still underway, the results of which will be actioned by the acting CEO.
Ndebele said matters which are still subject to due legal process and internal Human Resource procedures cannot be publicly disclosed at this stage.
"As the department, we've adopted a zero tolerance stance to fraud, corruption and mismanagement. Any people found guilty of such acts are liable on conviction to a fine, dismissal or imprisonment," he said.
The minister said their interventions going forward include the provision of the RMTC Act that needed to be reviewed to facilitate operational and governance support of the RMTC.
Optimal functioning of the RMTC Shareholders' Committee needs to be ensured as well as introducing a controlled and monitored performance management system for the RMTC and improving the process of the appointment of the RMTC Board and CEO to ensure accountability, the minister recommended.
The report will also be presented to the next RMTC Shareholders' Committee meeting scheduled for next month as well as to the Portfolio Committee on Transport.
