Pretoria - The Road Traffic Management Corporation (RTMC) is no longer in a cash crisis, says acting RTMC boss Collins Letsoalo.
"The RTMC was in a mess two years ago. But as we speak, we are not in the 'intensive care unit', we are financially strong. There is stability in the handling of our finances. We've put measures to properly handle our finances," Letsoalo told a briefing hosted by the National Press Club in Pretoria on Tuesday.
Two years ago, the RTMC was facing financial difficulties as a result of the mismanagement of finances and gross irregularities that culminated in unauthorised spending of more than R500 million by its previous managers and the board.
In February 2010,Transport Minister Sibusiso Ndebele appointed an independent task team to investigate allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC.
The then CEO Ranthoko Rakgoale was placed on special leave and then on suspension, and Letsoalo was appointed acting CEO.
The minister last week said a turnaround plan at RTMC had resulted in stability within the agency. He also said he had decided not to renew the board's term "due to the preliminary findings that had pointed to a dysfunctional board, which had failed to provide the necessary oversight to the entity".
Letsoalo said that the police were continuing their investigations. The people who were now employed at the RTMC had the relevant qualifications and experience and were professional.
Meanwhile, Letsoalo expressed his dissatisfaction at the number of people who were dying on South African roads daily. "Every day, 40 people die on South African roads. The majority are passengers and pedestrians who cannot afford to buy vehicles," he said.
Letsoalo said 80% of fatal crashes on South African roads were preceded by a traffic violation such as speeding, reckless driving or driving under the influence of alcohol. About 63% of pedestrians, drivers or passengers who died on the roads were found to be under the influence of alcohol, he said.
He hailed a programme which taught young people about road safety initiatives by incorporating these issues into life orientation at primary schools across the country.
Letsoalo said the RTMC was considering introducing a novice drivers' system, under which drivers with newly acquired licences will be regarded as being on probation for three years before they qualify to hold permanent driver's licences.
