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BL Premium reports that the disbandment of the Road Accident Fund (RAF) board weeks before suspended CEO Collins Letsoalo’s term of office ends puts Transport Minister Barbara Creecy in a legal bind over the appointment of a new CEO.
Letsoalo’s term ends next month and, without a board, the process of appointing a CEO will have to be delayed. The RAF Act stipulates that the RAF board must recommend CEO candidates after which the minister appoints one of them. Legally, nothing prohibits Letsoalo from applying for a second term. The minister last week dissolved the RAF board, citing “persistent governance and operational challenges that have beset the RAF and significantly undermined its ability to discharge its statutory mandate”. Transport ministry spokesperson Collen Msibi said the department planned to appoint a new board by December. The new board would thereafter initiate a process to appoint the head of the fund. Before the board was dissolved, Transport Deputy Minister Mkhuleko Hlengwa had been urging it to fast track the appointment of a CEO. Msibi advised that RAF chief strategy officer Phathutshedzo Lukhwareni, who was acting as CEO, would continue acting in the position. “RAF has an acting CEO who is currently responsible for managing the business. So there is currently no vacuum that will affect the business operations of the entity,” Msibi pointed out.
- Read the full original of the report in the above regard by Sinesipho Schrieber at BusinessLive (subscriber access only)
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