High court criticises RAF for how far it has gone to protect its former CEO

A Bloemfontein High Court judge has highlighted that the facts in his judgment “will show how far the RAF [Road Accident Fund] has gone to protect” its former CEO Collins Letsoalo, who has been convicted of contempt of court.

Judge Johannes Daffue made these remarks in a judgment to an application by Kazibone Mlambo, a Zimbabwean citizen, for declaratory orders against the RAF.

“A simple third-party claim by a Zimbabwean national which culminated in a court order in his favour has triggered a litigious war of enormous proportions.

“It is a shame that so much money has been wasted over the last two years,” Daffue said in a judgment handed down this month.

‘In breach’

He declared the RAF to be in breach of a court order dated 22 January 2025 for failing to effect payment of the taxed costs and interest on the capital sum in terms of the order of the High Court in Bloemfontein dated 8 March 2023.

However, he dismissed Mlambo’s application for the immediate execution of the prison sentence of 30 days imposed on Letsoalo for contempt of court in an earlier judgment.

Daffue said he is not prepared to make such an order “bearing in mind the confusion created by Mlambo’s legal team”.

“Furthermore, Letsoalo has been suspended as CEO, which makes it impossible for him to comply with any order to escape imprisonment.

“In the circumstances, I shall merely direct the RAF to pay the outstanding amounts within 60 days.

“Leave shall be granted to Mlambo to approach the court on the same papers, duly supplemented, for any further relief he may be advised to seek,” he said.

Although Letsoalo was suspended by the RAF this year, his contract subsequently expired and he is no longer employed by the fund.

‘Confusion’ over identity number

Judge Daffue’s reference to the confusion created by Mlambo’s legal team relates to the heading of the documents presented to the trial court, including the draft order, containing an incorrect identity number for Mlambo.

Daffue said the identity number is an error because the number might have been allocated to a South African woman.

But he stressed that no reasonable person at any stage could have believed this identity number was correct.

Counterapplication dismissed 

Judge Daffue also dismissed the RAF’s counterapplication for the rescission and setting aside of four orders granted by the High Court in Bloemfontein with costs.

1. The first was the order of Deputy Judge President Nobulawo Mbhele on 8 March 2023 after the RAF accepted liability for payment of 100% of Mlambo’s proven or agreed damages and was ordered to pay R2 770 275.85 in settlement of Mlambo’s general damages and loss of earnings, including interest on the capital sum if not paid within 180 days.
2. The second order was issued by Judge Phillip Loubser on 28 March 2024 in which the RAF and Letsoalo were directed to comply with the Mbhele order within seven days, failing which leave was granted to Mlambo to approach the court on the same papers, duly supplemented, to apply for a contempt of court order.
3. The third order was issued by Judge Sharon Chesiwe on 25 July 2024 in terms of which the RAF and Letsoalo were held to be in contempt of court and Letsoalo was, among other things, sentenced to 30 days imprisonment, conditionally suspended for a period of six months, to give him and the RAF an opportunity to comply with the previous two orders.
4. The fourth order was issued by Acting Judge Denise Greyling-Coetzer on 22 January 2025 to an application by the RAF and Letsoalo in terms of which the Judge Chesiwe order was suspended for a further period of 30 days and the RAF directed to pay the outstanding taxed costs and interest on the capital sum within 30 days from the date of the order as well as the costs of that application.

On 27 March 2025, more than two months after Greyling-Coetzer’s order, Mlambo issued the present application and the RAF its counterapplication.

Daffue said this application and the counterapplication consist of 305 pages and the two sets of heads of argument a further 60 pages.

Read: RAF inquiry: Two years and almost R23bn in excess payments

“Yet again, proof of an unnecessary waste of money,” he said.

Protecting Letsoalo

Daffue referred to the RAF’s protection of Letsoalo in his judgment.

He said Estelle Janse van Rensburg, the RAF’s acting Johannesburg regional general manager, deposed a founding affidavit attached to the counterapplication.

Read: RAF gets fourth CEO in seven months

He said Van Rensburg “came up with a version” that the identity number appearing on the heading of the papers is that of a South African female citizen born in 1986, a year and 10 months and seven days before Mlambo’s birth, and then explains on what basis she came to this conclusion.

“Mrs Van Rensburg’s allegations of fraud [are] uncalled for, but also a futile exercise to protect Letsoalo, her Chief Executive Officer at the time,” says Daffue in his judgment.

“In … both her founding and replying affidavits in the present application, she recorded as having access to all the RAF’s records pertaining to Mlambo’s claim and that she had perused some to avail herself therewith.

“She either did not read the documents or did so, and if she did, she deliberately misrepresented the facts.

“The first page of the RAF1 form, being the first document of the bundle of documents sent to the RAF on 19 August 2022, ex facie [on the face of] the letter of Mlambo’s attorney, shows that Mlambo is a male and that his passport number is […].

“Obviously, she neglected to peruse Mlambo’s affidavit, the extract of his passport and the hospital records attached to the letter of 19 August 2022.

“She also failed to speak to Ms [Megan] Booysen, the RAF lawyer who represented it at the hearing,” said Daffue.

“The only reasonable inference to be drawn from her version is that she jumped to conclusions to assist Letsoalo.”

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