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The Road Traffic Management Corporation (RTMC) has run out of money and is teetering on the brink of financial collapse.
The Road Traffic Management Corporation (RTMC), tasked with co-ordinating law enforcement to keep the country’s roads safe and in good condition, has run out of money and is teetering on the brink of financial collapse.
Acting CEO Collins Letsoalo shocked members of the National Assembly’s transport committee on Tuesday when he admitted that the organisation was “effectively insolvent” after the National Treasury turned down a request for additional funding.
The situation has led to all vacant posts at the corporation, currently about 30 percent, being frozen.
It had also caused “low staff morale” as “deserving staff members” had not been awarded performance bonuses, Letsoalo said.
Its cash woes stem largely from the fact that previous managers – and the board – presided over chronic mismanagement and gross irregularities that culminated in unauthorised spending of about R600 million.
According to an earlier report by a task team appointed to investigate, millions of rand went down the drain as public funds were splurged on luxury cars, unused office space, unnecessary auditing contracts and inappropriate IT.
For instance, the previous management bought an accident reporting system for R85m, installed an IT helpdesk for R9m, a payroll system for R34m and entered into a R658m, 10-year property lease – dwarfing its annual budget of R78m.
In an attempt to sort out the mess, the RTMC hired auditing firm Deloitte to clean up its books – in spite of already employing a fully staffed financial management team – at a cost of R13.3m.
And despite Transport Minister Sibusiso Ndebele’s promise last September that he would take a “zero tolerance” approach to fraud, corruption and mismanagement – and that wrongdoers would “face the consequences” – not a single official has been successfully prosecuted.
on Tuesday, DA MP and the party’s transport spokesman Ian Ollis said
: “I am, therefore, calling on Transport Minister Sibusiso Ndebele to urgently intervene in the matter and resolve the financial deadlock,” he said.
But addressing the committee yesterday, Ndebele expressed satisfaction at the “interventions” under way to address the “challenges besetting (the RTMC)”. - Political Bureau
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MsLee, wrote
It seems we've gone beyond the tipping point and that things are unravelling faster and faster every day. The scary thing is: where will it all end ...?
Benjamin Afrika, wrote
@Gotcha - Tell me, my Dear Fellow, do you have a Virgin Active Gym membership? You may wish to work out your brain whilst you are on the gravy-train treadmill.
Anonymous, wrote
Look at whether you deserve your salary, whether there is actually a need for this entity, whether your Act is constitutional, your experience (count the years since you started as an intern at SARB), and then you will know why you are bankrupt. Its high time that pipols like you must be criminally charged i.t.o. the PFMA. Why are you seeing it now, where is the CFO (probably one of your mates)... It guys like you who give public service a bad name.
Andre from Kensington, wrote
Don't worry guys, we the hardworking get up at sunrise come home in the dark, work our a**es off for the upliftment of theis country through our taxes will bail you out! I mean what else don't we do from financing unecessary arms, presidential jets, expensive VIP cars and protection services even at police stations right to supporting a polygamous president and his entire family to owning houses and furnishing them to the utmost lavish lifestyles down to an MEC having a dinner for one person at +- R90,000 as well well curtains that are 4 times more the annual undergroung miners annual salary aroungd to upgrading roads as well as financing traditional leader well eing who contribute jacksh*t to this country upliftment. Why the hell not you as well!
desertdog, wrote
seriously, how much bolder does the writing on the wall have to get ? SA is going down the same route as the rest of Africa
TOKYO3991, wrote
LOL@Gotcha, what an A-Hole you are, no doubt you have you grubby ANC paws in the cookie jar too... get out of my country IDIOT!
aNON, wrote
funny how commentators such as 'gotcha' resort to old clichés like pack up and go to UK, OZ, etc; hand power back to whites, never....etc etc. question, are you and your tribe so scared of a white minority taking control of SA? are you demented? we are too small a community to take control, we are not interested in reinventing apartheid it belongs in history BUT we are very interested in making SA a very viable democracy and a financially successful one at that. we are not interested in the thieving and corrupt ways of your tribe and that there may or may not be corruption elsewhere in the world is not our concern, our concern is SA! my family exited SA in 1986 and believe me they're not in a hurry to get back any time at all. i wish i could join them and if you and your tribe would collect cash for me (steal it or whatever but just make it an obscene amount) i would happily go for at least just peace of mind.
Deebee, wrote
Quite frankly I'm tired of ANC supporters crying racism every time someone takes a swipe at their ineptitude and corruption. Almost as sick as I am of detractors who revel in predicting another Zimbabwe and their 'This is Africa' rubbish. Both sides need to grow up and look objectively at where we are, rather than trying to justify their smug positions.
Deebee, wrote
@Gotcha - sorry boet, but just because there is corruption in other countries, does not excuse it here. If there is rape and murder in other countries does that somehow lessen how disgusting they are? And more to the point, the people who are suffering the most from the rampant corruption, mismanagement, cronyism and utter ineptitude are the poorest of the poor
Anonymous, wrote
Actually Gotcha, I emigrated to Aussie three years ago, now earn four times what I did in SA and can walk my suburb anytime of the night or day in complete safety. So no, like many, many other Saffers here, we will not be going back to SA, which is pointing in the direction of Zimbabwe now with only a matter of time before it gets there. Maybe when it does and your children are hungry and beaten by thuggish security forces, you will remember the so called freedom you fought for. Read Animal Farm, it's a classic.
Anonymous, wrote
@Gotcha. I feel your pain, but realise that the sins of the past should not mask the sins of the present, even if the sins of the past have an impact on the present. Many managers in govt are incompetent due to a poor work ethic or a lack of pride in their work, but they unfortunately for the majority of South Africans are protected for various reasons. This should not be the case.
russell, wrote
WOW ….. people in this country voting for the ANC are like Dear staring in to the headlights not realising they will be driven over. The people of our history who fought for freedom would have never fought so hard if they had any indication this is what Freedom would mean, corruption through to the bone. No wonder Mandela does no public engagements anymore _ he himself cannot believe this is His free country – he won the battle but his brothers have lost the war. How do you recover from such degradation –certainly not by keeping this government in place – South Africa is burning. The People have the power when will they use it for a better life in SA?????????????????????????????????????????????????
Anonymous, wrote
So, another government dept. in trouble. With the same old story: The managers stole the money, plain and simple. I wonder if PRASA and metrorail will be the next government bleeding companies to report that they have no money - just judging by the way the train services are going down the tubes, pun intended. Trains are cancelled daily for weeks on end. Trains are late for no apparent reason. Cables are being stolen by insiders[surely!] and causing terrible delays and dangerously full carriages. Just remember that the rail companies are receiving huge subsidies...with NO oversight since no one can be held accountable.
Anonymous, wrote
Anonymous, wrote
Desmond, wrote
It seems that most ministers are total denial about the state of their departments. Are they neglecting their fiduciary responsibilities, ie. leadership, etc
Anonymous, wrote
@Gotcha. Ahahahaha....'teething' problems you say - try 'thieving problems' you moron. Oh well, without us you would still have your calabash on your head and would still be trudging along the dirt track - so what could you possibly understand about these things anyway. Too funny.
Anonymous, wrote
Jeez, this place is on it's way down the sh*tter sh'ap sh'ap. Unbelievable stuff this....Its cash woes stem largely from the fact that previous managers – and the board – presided over chronic mismanagement and gross irregularities that culminated in unauthorised spending of about R600 million.
p, wrote
ANC you are embarrassing us as people and you are embarrassing the people that voted for you if they are noticing as they are hungry and blind folded. Sis skelms.
Gotcha, wrote
I bet you if we had transparency in the old apartheid government, more horrific corruption stories would have been revealed! Yes there is corruption, and yes it's nauseating. But we have to remember that corruption is rampant all over the world, it's just that it's always swept under the carpet. If you feel that South Africa is going down under, then why don't you emigrate to Europe, the UK or Australia? I bet you you'll be back here within 2 years after realising that after all, you were in paradise in South Africa! NOW start packing while we try to fix our young democracy's "teething" problems and root out corruption to pave the way for our children. Stop bickering. We have enough negativity as it is, we don't need your collective racist comments. You want us to hand power back to the whites? Never!
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