Road Accident Fund (RAF) head of security, Stephen Msiza, has made startling revelations about former CEO Collins Letsoalo’s close protection services that came at a cost of R8m a year, which exceeded the R480,000 limit set by the board.

Testifying at the Standing Committee Accounts’ (Scopa) inquiry into the RAF earlier this week, Msiza confirmed that the close protection services were provided to Letsoalo despite the SAPS finding no threat to his life.

“The board said the security must be procured because this is a policy issue,” he said.

Scopa Chairperson Songezo said they were particularly interested in the expenditure on close protection services because there was an apparent difference between what the board determined and what was spent.

“This has been flagged by the Auditor-General, and it is also something we picked up during our interactions with RAF,” Zibi said.

The inquiry heard that apart from the R24m for close protection services, the associated costs for fuel, hotel accommodation and subsistence, and travel claim cost R7m over the past three years.

In 2023, RAF paid R797,954 in fuel, R3.1m the following year, and R3.2m in 2025.

Apart from Letsoalo receiving security services, two former board chairpersons enjoyed fringe benefits in line with the policy, and no threat assessment was done on them.

“Close protection services is allocated to the chair and CEO. This is benchmarked against other entities,” Msiza said.

Zibi raised concern about this arrangement.

“There are other financial institutions that work with more money, and there is more at stake, and those people don’t get protection within the state environment,” he said.

Msiza, who joined the RAF in June 2021, said he was seconded from Passenger Rail Agency of South Africa (Prasa) to work as a security specialist at Letsoalo’s office.

Msiza previously worked as Letsoalo’s bodyguard at Road Traffic Management Corporation (RMTC) when there were threats to his life and then moved with him to Prasa, where he worked within the security division.

Zibi observed that Msiza, who previously worked as a bodyguard to EFF leader Julius Malema, worked at Letsoalo’s places of employment.

“The place you can’t go to is where he is now,” he said in reference to the former CEO being jobless now.

According to Msiza, the procurement of Letsoalo’s security was made by the board after he arrived at the RAF, and the company that was hired did not take up the job; apparently, it had underquoted.

Another company subsequently provided the service and charged R144,000 a month.

There were initially three bodyguards for Letsoalo, but the number increased to six, and the number was nine at the time he left the RAF.

Asked about the increase in Letsoalo’s bodyguards, Msiza said some armed people came to the office park, where RAF offices are located, at about the time the contract of the security company was ending and RAF was creating its internal security capacity.

He told the inquiry that Letsoalo had instructed that his wife and son be provided with security.

Msiza said he had expressed his displeasure with providing the security to the wife and son.

“Our relationship became sour precisely because of those things.”

However, Msiza said he had warned Letsoalo that the matter would blow up one day..

“For me, it was a kill. I remember telling him. He said, ‘RAF is compromising my family’. If I did not deliver, I was going to be charged,” he said.

Msiza said there was a hit on Letsoalo’s life and he requested the bulletproof car.

“The service provider assisted with the vehicle for which he refused to pay for the usage.”

Msiza had thought that the procurement of the R4.4 million armoured vehicle would reduce the cost for hotel accommodation and subsistence, and travel, but it was not to be, as his boss frequented Limpopo.

“When I said cut down, he said ‘no ways’.”

Msiza added that the armoured vehicle was serviced often.

“That car has weight. It is not an off-road vehicle. When it steps on a stone, it cracks rims. On several occasions, we fixed rims and replaced tyres,” he said of the vehicle now parked at the RAF offices.

He added that the armoured vehicle was not factory-fitted, and its windows did not open like ordinary cars.

“His displeasure with the vehicle procured was that it does not open the window. When he gets to the boom gate, somebody must open it.”

Msiza told the inquiry about how the bodyguards were made to work on Letsoalo’s farm and would also report for duty at his house from early morning.

“They will be in the car or do his errands. He will send them everywhere. They will use a state vehicle with a petrol card,” Msiza said.

Msiza confirmed that he was without a security clearance certificate and that he registered a company with Letsoalo for poultry farming during the Covid-19 pandemic.

“We nearly became business partners. It (business) never materialised.”

He also confirmed that his highest qualification is a diploma in human resources.

Msiza said the RAF human resources division could explain why the qualifications for the position were lowered t,o apparently to suit him when MPs suggested.

The post was initially advertised with a post-graduate qualification as a requirement, but was re-advertised to provide for NQF Level 6 qualification and experience.

“Human Resources is in a better space to explain that,” he said.

mayibongwe.maqhina@inl.co.za

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