Ex-RAF CEO Letsoalo rejected services of GCIS as too expensive, SCOPA hears

Media and marketing officials testifying before Parliament’s inquiry into the Road Accident Fund (RAF) allege former CEO Collins Letsoalo rejected the services of the Government Communication and Information System (GCIS), claiming it’s too expensive.

Instead, two media companies were hired at a cost of a billion rand to handle the communication and marketing needs of the fund.

The Standing Committee on Public Accounts (SCOPA) is on Wednesday probing whether the two contracts have proven to be value for money, with concerns raised that the fund is running the risk of overspending on the five-year contracts.

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The RAF’s communications head, McIntosh Polela, and marketing manager, Hlami Mathye, said they had no say in terminating a memorandum of understanding with the GCIS.

Polela said the decision preceded his appointment in 2023.

"I did ask about the possibility of going through GCIS and I was told the MOU was no longer available for that."

Mathye was also questioned by committee chairperson, Songezo Zibi, about the decision to ditch the GCIS, despite a cost analysis.

"Did you not do an analysis that showed that GCIS was cost-effective?" asked Zibi. 

"Yes, we did," answered Mathye. 

"So, are you telling me, he [Letsoalo] rejected the report presented to him?" pressed Zibi. 

"Exactly," replied Mathye.

Instead, MediaMix360 was hired for media buying and placement, while Dzinge Productions was contracted for content creation, contracts each worth R500 million. 

Zibi pointed out that by the end of June this year, more than R400 million had already been spent on one of the contracts that’s only due to expire in two years’ time.