The Road Traffic Management Corporation (RTMC) says it is waiting to hear if the National Treasury has written off the R200 million it owes the transport department
The RTMC had told the standing committee on public accounts that it did not have the money to repay the department, said acting chief executive Collins Letsoalo in Pretoria.
The money was irregularly spent by RTMC’s previous management.
Letsoalo said the RTMC had a budget of only R83 million and was unable to pay the R200m worth of e-Natis [electronic national administration traffic information system] transaction fees spent by its previous management.
On Friday, Letsoalo said Finance Minister Pravin Gordhan was looking into the matter and regularising it “through a condonation and write-off process”. On Tuesday, he said the RTMC was insolvent as the National Treasury had turned down its request for additional funding.
In 2010, Transport Minister S’bu Ndebele appointed a task team to investigate irregularities within the RTMC following complaints.
It was found that the abuse of procurement procedures within the corporation, had led to irregular expenditure amounting to R360m.
Four executives, including the then chief executive, were later suspended.
The then board’s term was not renewed. The RTMC has yet to announce a new board.
Road corp waiting for R22m write-off
The Road Traffic Management Corporation (RTMC) says it is waiting to hear if the National Treasury has written off the R200 million it owes the transport department
The RTMC had told the standing committee on public accounts that it did not have the money to repay the department, said acting chief executive Collins Letsoalo in Pretoria.
The money was irregularly spent by RTMC’s previous management.
Letsoalo said the RTMC had a budget of only R83 million and was unable to pay the R200m worth of e-Natis [electronic national administration traffic information system] transaction fees spent by its previous management.
On Friday, Letsoalo said Finance Minister Pravin Gordhan was looking into the matter and regularising it “through a condonation and write-off process”. On Tuesday, he said the RTMC was insolvent as the National Treasury had turned down its request for additional funding.
In 2010, Transport Minister S’bu Ndebele appointed a task team to investigate irregularities within the RTMC following complaints.
It was found that the abuse of procurement procedures within the corporation, had led to irregular expenditure amounting to R360m.
Four executives, including the then chief executive, were later suspended.
The then board’s term was not renewed. The RTMC has yet to announce a new board.
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