Johannesburg — MANAGEMENT of the Road Traffic Management Corporation (RTMC) under former CEO Ranthoko Rakgoale is expected to face a range of charges in the coming weeks after a report into mismanagement at the entity confirmed that R144m was squandered in irregular spending.
The report, presented to Transport Minister Sbu Ndebele on Tuesday, found that the RTMC management had irregularly used R300m in eNatis transaction fees to fund over-expenditure, and had signed an irregular lease agreement for R658m which ultimately led to a loss of R11m. It also noted the irregular purchase of an a ccident r eporting s ystem for R85m.
Other findings include R1,4m in VAT abuses, R5,5m spent on unexplained professional services, and excessive board fees for executives.
Mr Ndebele said the department would take a zero-tolerance approach to corruption and the former management would face disciplinary action and possibly criminal and civil action. He said it was still too early to say who would face what charges.
A task team led by former Absa executive Riah Phiyega was appointed by the minister in February to investigate mismanagement and the mandate of the RTMC.
Mr Ndebele moved swiftly to make the report's findings public, saying yesterday that the RTMC was a national priority as it was vital in preventing the continuing carnage on the roads.
"The fatalities and injuries on our roads are creating a society of orphans, an unacceptable loss of breadwinners, and a major cost to the economy. We are committed to ensuring that this ceases to be a daily occurrence in SA."
Mr Ndebele said the fact that an average of 38 people lost their lives on SA's roads daily was completely unacceptable and that the RTMC needed to be revitalised in order to carry out its mandate properly.
The report paints a picture of a corrupt institution that was unable to execute its mandate and was plagued by poor governance, funding shortages and skills shortages.
Ms Phiyega said the report found the RTMC still had a vital role to play in road traffic management and should not be disbanded. She also noted that the organisation was severely underfunded.

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