Minister Carlisle Calls for Immediate RTMC Shareholder Meeting

The Western Cape Minister of Transport and Public Work, Robin Carlisle has, as a major shareholder of the Road Traffic Management Corporation (RTMC), today called for an immediate meeting with the organisation's shareholders to be fully briefed on the investigation into the serious allegations of the misappropriation of taxpayers money. The following is the letter that he sent to the Board's Chairperson, Dr. John Sampson.

08 February 2010
Dr. John Sampson
Chairperson
Road Traffic Management Corporation

Dear Dr. Sampson

I am writing to you as a shareholder of the Road Traffic Management Corporation (RTMC), in my capacity as the Minister of Department of Transport and Public Works in the Western Cape. I urgently seek a comprehensive briefing from you about the serious allegations pertaining to the conduct of the Chief Executive Officer of the RTMC, Mr Ranthoko Rakgoale, and other senior officials of the organisation who have been implicated in serious instances of misappropriation, procurement irregularities and gross financial mismanagement.

The independent audit by Deloitte and Touche released on Sunday, 31 January 2010 appears to confirm beyond doubt, in my mind, that these allegations are true. The RTMC Act provides that the board is directly responsible for the efficiency and financial performance of the RTMC. Of the essence, of course, is the question of why the Board took so long to respond to these allegations as the information has been in the public domain for seven months.

I am also concerned that as a shareholder I did, and have, not received this documentation which I would now like at your earliest convenience.

The severity of these allegations can jeopardise the RTMCs role as the lead agency to enhance the overall quality of road traffic infrastructure service provision and, in particular, to ensure safety, security, order, discipline and mobility on the roads - something the Western Cape, and the rest of the country, can ill-afford in our quest to eradicate the carnage on our roads.

In order to maintain public confidence in both the RTMC and the Board in light of the extensive media coverage, it is imperative that the Board is seen to respond swiftly and decisively to the allegations. It is gratifying to note that the Board is going to investigate these allegations. I therefore urge you to immediately call a meeting with RTMCs shareholders to explain the process by which the Board will interrogate these allegations guided by the constitutional principles of transparency, accountability and integrity.

Kind regards

Robin Carlisle
Minister Transport and Public Works
Western Cape Provincial Government