RTMC CFO also suspended due to whistleblower allegations

Whistleblower allegations have now led to Road Traffic Management Corporation (RTMC) chief financial officer Liana Moolman also being placed on precautionary suspension.

Her suspension follows that of RTMC CEO Advocate Makhosini Msibi, who was placed on precautionary suspension effective from 1 July 2025 amid a host of serious allegations made by a whistleblower.

Msibi has since launched a high court application to have his suspension reviewed and set aside.

RTMC spokesperson Simon Zwane on Tuesday confirmed that Moolman was placed on precautionary suspension, effective from Monday last week, with the suspension authorised by interim RTMC CEO Refilwe Mongale.

Zwane said Moolman’s suspension “is related to the whistleblower reports that have been in circulation in the past few months”.

“This is to allow internal investigation processes to proceed fairly without prejudice,” he added.

“There is currently a forensic investigation at the RTMC. The investigation is still underway.”

The RTMC has appointed KPMG to conduct the forensic investigation.

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Outa surprised

Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenage on Wednesday expressed surprise at Moolman’s suspension.

Duvenage said they believed from reports they have seen that Moolman had been the one raising concerns and refusing to sign off on some of the dubious transactions linked to Msibi.

“But we don’t have enough facts to make a definitive comment,” he added.

A whistleblower told Moneyweb the allegations against Moolman relate to her alleged failure to manage the RTMC’s budget, with the corporation apparently reporting a deficit in the year, which has forced the RTMC to implement severe cost-containment measures that are negatively affecting operations.

The agency’s financial statements for 2024/25 have not yet been published.

ALSO READ: RTMC CEO’s suspension due to host of serious whistleblower allegations

RTMC leadership

Serious allegations made in several emails from a whistleblower to various entities – including the Department of Transport, parliament’s Standing Committee on Public Accounts (Scopa) chair Songezo Zibi, and The Presidency – and seen by Moneyweb, relate to financial misconduct, irregular procurement, abuse of authority and governance failures under Msibi’s leadership.

Among the issues raised is alleged acknowledgement by Msibi of a financial crisis at the RTMC in a circular issued to all staff on 31 May 2025, stating that the corporation “is in a dire financial state, facing severe liquidity constraints and an unsustainable fiscal position”.

A letter allegedly issued by the Auditor-General (AG) refers to R33.48 million in overspending against the RTMC’s total adjusted budget, with the whistleblower claiming Msibi failed “to account for the root causes of this crisis, which are directly linked to a series of financial decisions he personally took – often against the explicit recommendations of the chief financial officer (CFO)”.

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Msibi appeals to the courts

Msibi has cited the RTMC board, RTMC shareholders committee, the RTMC itself, and Minister of Transport Barbara Creecy as respondents in his application to review and set aside his precautionary suspension.

The application is being opposed by the RTMC.

Msibi claims the decision by the board to suspend him usurped the power of the shareholders committee, asserting that the RTMC CEO is not appointed by the former but by the latter – and that only the shareholders committee can therefore suspend or remove the CEO from his position.

He said some of the allegations that led the board to suspend him were investigated by reputable law firm Lawtons Africa, which found no evidence of wrongdoing on his part.

Msibi said Lawtons Africa only identified certain structural weaknesses in the procurement area within the RTMC, which required strengthening.

He claimed subsequent allegations by the whistleblowers were recently investigated by the AG, during the 2024/25 audit, with the RTMC receiving a clean audit.

Msibi further claimed the AG expressly indicated during the audit that its auditors had been provided with the whistleblower letters, which they investigated, but could not find any wrongdoing and/or fraud.

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Targeting by internal officials

He said these alleged complaints are brought by those who seek to destabilise the RTMC and the progress achieved as a state-owned entity.

Msibi alleged these allegations are peddled by two officials, one of whom was investigated by the State Security Agency for conducting businesses and receiving monies without the requisite disclosure to the RTMC.

He said the other official was disciplined for issues related to his conduct as a member of the RTMC’s Bid Adjudication Committee, had his salary docked, and the RTMC, on Msibi’s instructions, opened a criminal case of fraud against him with the South African Police Service.

He said these officials clearly have a score to settle with him because of the steps he has taken against them and have embarked on a deliberate strategy to tarnish his name.

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Impact of suspension

Msibi further claimed there is a concerted effort to remove him as RTMC CEO due to the work he does and has done investigating corrupt officials across the country, who work with members of the public to defraud the government and the public purse.

He claimed these investigations have saved the government and the public purse millions and have led to the conviction of a number of officials

This, he said, has no doubt made him enemies both within and outside the organisation.

Msibi added that his suspension is causing irreparable harm to both the RTMC and his reputation, as the projects he was leading on behalf of the RTMC are now on hold in his absence.

Asked to comment on the status of the high court challenge to Msibi’s suspension, Zwane said on Tuesday that the parties are waiting for the court to allocate a date for the hearing of the application.

This article was republished from Moneyweb. Read the original here.