Pretoria - In a groundbreaking judgment that will have a devastating effect on the pockets of the Road Accident Fund CEO Collins Letsoalo and his board members, the Mpumalanga division of the high court ordered they were personally liable to pay the legal costs in two RAF matters in which the fund did not do its work.
The disarray at the RAF - especially after it fired its panel of lawyers with no workable plan in place - and the disregard for the rules of court to try and avoid chaos in dealing with RAF matters, are some of the reasons cited by the judge president of this division, Judge Francis Legodi, why Letsoalo and his board must personally dig into their pockets.
In a strongly worded 97-page judgment, the judge made it clear if the fund did not get its house in order, chaos regarding RAF matters in courts around the country can be the result.
The court made a “de bonis propris” cost order against them, which is normally made when the court is satisfied there has been a serious degree of negligence by a party. This is made to mark the court’s displeasure.
While it is not clear how much Letsoalo and his board will have to pay, some legal experts estimate it's hundreds of thousands, if not millions.
Letsoalo appeared in person in June before the court and through the advocate appearing for the RAF, faced questions by the judges regarding the functioning of the fund.
These included such as what contingency plans were in place when it fired its panel of attorneys in 2020.
The judges made it clear that as things stood, the courts had to step in to ensure claims were dealt with adequately and to try to prevent chaos.
They wanted answers as to why Letsoalo and his board should not personally face the brunt - through a costs order.
The inquiry was sparked by two cases which were, against the directives of the division of the court, settled at the last minute, as the trials were supposed to begin.
The court reserved judgment on the issue whether Letsoalo and his panel personally had to foot the bill in the two cases which are the subject of this judgment.
In the judgment delivered today Judge Legodi said things especially started going wrong after the fund fired its panel of lawyers to deal with RAF matters.
While Letsoalo said there was a plan in place, the judge said it’s clear that they were fired with no plan in place.
“That had the potential not only to throw the fund into chaos, but also to bring the court rolls to a halt and chaos as it has happened and continue to be experienced in other divisions,” the judge said.
He added that the frustrations brought about by this chaos can be seen from the directives issued by various divisions of the courts, in a bid to try and deal with RAF matters.
While Letsoalo blamed funds and a lack of manpower as part of the problems, Judge Legodi said it is the responsibility of the CEO and the board to ensure that the fund prepares properly for cases before the courts.
He ordered Letsoalo to bring this judgment under the intention of Transport Minister Fikile Mbalula by no later than Thursday.
Pretoria News