The chief executive of the Road Traffic Management Corporation, Ranthoko Rakgoale, is under investigation after allegations of mismanagement were levelled against him, the transport department said on Tuesday.

The investigation was ordered by Transport Minister Sibusiso Ndebele, said transport spokesperson Logan Maistry in a statement.

"Based on the outcome of the investigation, a decision regarding further action will be taken," he said.

The allegations were reported in the Sunday Times this weekend, detailing accusations of mismanagement against Rakgoale by RTMC staff.

The report said he was accused of wasting millions on useless projects, "including a R1.3-million jaunt for staff and guests to watch the Confederations Cup, at a cost of up to R31 763 per person, ostensibly to prepare for the 2010 World Cup."

It said disgruntled staff accused Rakgoale of functioning like a "dictator" and wanted Ndebele to investigate the running of the corporation, set up in 2005.

Ndebele's department was sent a letter in June detailing further accusations against Rakgoale such as spending R4.5-million on workshops last October and November, for which R1.5-million had been budgeted; entering into a 10-year R658-million lease for nine office blocks in Pretoria, with only two being used, buying office furniture for R1.2-million without advertising it on open tender and using an official vehicle worth R271 000, despite him receiving a hefty car allowance.

The chief executive has denied the allegations against him, the report said.

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