Supreme Court ruling clears Collins Letsoalo and RAF Board of personal liability

Staff reporter

In a significant victory for Collins Letsoalo, CEO of the Road Accident Fund (RAF), the Supreme Court of Appeal has ruled in his favour, reversing a previous High Court ruling that sought to hold him and the RAF board personally liable for the costs of delayed claims.

The court instead held the RAF itself responsible for the financial consequences of the delays in two cases involving victims Dumisani Elvis Hlatshwayo and Mzwandile Modcay Masilela.

This ruling marks another chapter in Letsoalo’s fearless leadership and his ongoing efforts to reform and stabilize the troubled public institution. The case arose after delays in the settlement of two claims filed by Hlatshwayo and Masilela, whose payments were only finalised the day before their respective trials in 2022.

Hlatshwayo had filed his claim in 2018, and Masilela followed in early 2018 as well. Despite both claims being acknowledged by the RAF, various administrative failures, including the RAF’s failure to attend case management hearings and meet documentation requirements, led to prolonged delays. These delays triggered an inquiry by the High Court into the reasons behind the tardy settlements.  

The High Court had initially ordered that Letsoalo and the RAF board personally pay the costs related to the delays, citing the late settlements and procedural failures. The ruling was a blow to Letsoalo, who, despite his strategic leadership at the helm of the RAF, faced undue criticism for circumstances beyond his control.

Letsoalo, recognised for his determination and commitment to transparency, promptly appealed the decision. After a thorough review, the Supreme Court of Appeal ruled in favour of Letsoalo and the board, stating that the Road Accident Fund (RAF), rather than the individuals, should bear the costs. The court concluded that the board was not involved in the inquiry and was unaware of several procedural failures.

This marked a key moment in Letsoalo’s defence of his leadership, which has often been scrutinized but remains steadfast. Letsoalo’s leadership has been a defining factor in the RAF’s approach to challenges over the past few years. Under his guidance, the RAF has undergone substantial reforms aimed at addressing the chronic issues of delayed claims and poor customer service.

Letsoalo has prioritized digitization and improved claims processing, transforming the RAF into a more efficient and accountable entity. His leadership has seen successes, such as faster turnaround times for claims and a more robust process for legal and medical evaluations, earning praise for his resilience in an often thankless role. Despite these efforts, Letsoalo has faced significant hurdles.

The RAF’s contract termination with panel attorneys, which contributed to the delays in the Hlatshwayo and Masilela claims, was a decision made as part of a broader strategy to revamp the organization’s internal structure.

However, these decisions have often led to administrative missteps, drawing criticism from the public and the media. Yet, in this case, Letsoalo’s appeal and subsequent victory at the Supreme Court demonstrate his ability to navigate complex legal and administrative challenges. He was exonerated from personal responsibility for the delays.

The Supreme Court's ruling not only cleared him of any wrongdoing but also held the RAF accountable as an institution. Additionally, the court dismissed any claims that Letsoalo acted maliciously in the delays, stating that there was no evidence to suggest bad faith on his part or that of the RAF board.