Report details financial mismanagement at RTMC

2010-11-16 13:40

A report detailing “horrific” mismanagement of hundreds of millions of rands of taxpayers money by the Road Traffic Management Corporation (RTMC) was tabled in Parliament today.

Riah Phiyega, chairperson of the ministerial task team which was appointed to investigate irregularities at the corporation, told the portfolio committee on transport that the institution had used R300?million worth of electronic National Traffic Information System (eNatis) transaction fees to cover its expenses.

“The Treasury requires that the RTMC collects what they have to collect for eNatis and transfer it to the department of transport,” Phiyega told the committee.

“The department is then able to service its commitments. Whatever is remaining goes back to the Treasury. The RTMC did not transfer the funds.

“They took the money and services to cover expenditure existing in the organisation. This shows the recklessness, abuse and non-compliance in terms of what happened there.”

The task team’s investigation included an irregular R658?million lease over a 10-year-period. The lease was cancelled when Transport Minister Sibusiso Ndebele found out about it and ended up costing R11?million.

“That has been a saving grace for the department,” Phiyega said.

Ndebele appointed the four-member task team in February, following reports of mismanagement at the corporation. More than 40 people were interviewed during the investigation.

Ndebele suspended chief executive Ranthoko Rakgoale when the task team was appointed. Collins Letsoalo, deputy director general of financial services at the department, was appointed acting chief executive.

The board of the corporation was dissolved in April. A new one is yet to be appointed.

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