Letsoalo’s suspension sparks uproar: Reformist CEO taken down amid legal backlash

In a move that has ignited controversy and speculation, Collins Letsoalo, the CEO of the Road Accident Fund (RAF), has been placed on suspension — a decision that legal experts and insiders say is less about accountability and more about political appeasement.

Letsoalo’s suspension comes just weeks after a Supreme Court of Appeal ruling cleared him and the RAF board of personal liability in two long-delayed claims.

While the court’s decision offered legal vindication, the political pressure around his leadership has been mounting, largely from within a legal fraternity that has openly waged war on him since his tenure began.

Sources close to the matter claim the suspension was a calculated move to pacify a deeply aggrieved group of attorneys, many of whom also serve as magistrates and judges and wield substantial influence and public funds.

These lawyers have seen their lucrative RAF-related revenues dry up under Letsoalo’s aggressive anti-corruption and reform agenda. Letsoalo is no stranger to conflict. He publicly branded elements of the legal industry as “thuggish,” accusing some attorneys of manipulating the claims system for personal enrichment at the expense of road accident victims.

One of the most high-profile battles was with Gert Nel Incorporated and the Association for the Protection of Road Accident Victims (APRAV), whom Letsoalo accused of fighting transformation and resisting the Road Accident Benefit Scheme (RABS) Bill — a policy shift that threatens the profit models of many legal firms.

“They never cared about victims,” Letsoalo declared during a media briefing in March. “They cared about the billions they’ve made off the pain of others.”

He added that some attorneys operated more like crime syndicates, exaggerating or fabricating claims to pocket millions in legal fees, funds that should be going to victims and healthcare providers.

In one now-infamous case, the RAF rejected a R10 million claim involving alleged cognitive impairments after a 2017 taxi accident.

Letsoalo labelled the case fraudulent, saying attorneys stood to make R2.5 million from a single claim. “This is not a mistake. This is a fraud, plain and simple,” he said. But such candour came at a price. Letsoalo’s critics within the legal profession and even inside some state corridors have long lobbied for his removal.

“He took bread out of the mouths of fat cats,” said a senior RAF official who asked to remain anonymous. “This was always coming.

He made powerful enemies.”While some in government insist that Letsoalo’s suspension is linked to administrative concerns — such as the R79 million lease deal under investigation by the Special Investigating Unit — his supporters argue that it’s part of a broader effort to sideline reformers challenging deep-rooted corruption. Ironically, Letsoalo was also praised as a hero by victims' groups and transparency advocates.

He digitised claims processes, slashed legal middlemen, and shortened turnaround times. But in doing so, he disrupted the status quo, and it may have cost him his job.

As the RAF continues without him, questions loom about whether Letsoalo’s removal is the end of a reform era — or just a temporary pause in a much-needed battle against systemic abuse.