SCOPA launches inquiry into Road Accident Fund over mismanagement allegations
The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF
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The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF) following mounting allegations of financial mismanagement, wasteful spending, and governance failures.
According to the committee, this decision "follows months of repeated attempts by the committee to obtain truthful, complete information from the RAF Board and executive management to little avail".
SCOPA is expected to approve the terms of reference for the inquiry on July 1, 2025, with the investigation set to commence after the August recess.
IOL previously reported the suspended CEO Collins Letsoalo also held the position of Chief Claims Officer while he was at the helm of the entity and received an increased bonus for the additional duties.
The Committee also expressed its frustrations, stressing it cannot perform "its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting information".
Among SCOPA’s key concerns are:
- Failure to perform adequate background checks on senior management and executive appointments who nonetheless have access to and manage significant sums of public funds despite having a deeply concerning employment and disciplinary history involving allegations of reckless financial management decisions.
- Subsequent refusal by the RAF to disclose to the committee where such funds are kept and for what purpose.
- Failure to appoint critical officials such as a Chief Claims Officer, Head of Claims Operations, Head of Legal, Chief Corporate Support Officer, Head of People Management etc, for an unacceptably long time while decisions with a significant financial impact on the RAF are being taken, alternatively not being taken when they should.
- Apparent failures of governance with a direct impact on the rule of law, the authority and powers of Parliament, as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people.
- Numerous whistleblower accounts relating to supply chain irregularities involving more than R1 billion, while internal management controls appear not to be applied.
"These allegations point to failure by the Board to properly oversee management’s decisions and actions in line with their statutory mandate," Scopa said.
SCOPA Chairperson Songezo Zibi said the scale and seriousness of the complaints necessitate a thorough investigation.
“The volume of complaints and related documentary disclosures to the committee about the RAF make it necessary to examine them thoroughly, and make such recommendations as may be necessary to ensure that the institution does its work within legal and constitutional prescripts, and serves the public interest as intended.
"An inquiry will also give everyone involved or implicated the opportunity to state their case under oath, and receive a fair hearing before the committee draws its conclusions.”
ActionSA said it supported the decision for a parliamentary enquiry into the governance and operations of the RAF.
"ActionSA has taken decisive steps. We have formally written to the Minister of Transport, Barbara Creecy, calling for the immediate dismissal of the entire RAF Board. Furthermore, ActionSA has tabled a motion in Parliament calling for a full debate on the corruption, incompetence, and wasteful expenditure that has come to define the RAF,". the party said.
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