Cape Town – The Standing Committee on Public Accounts (SCOPA) is going to probe allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct at the Road Accident Fund (RAF).
The decision announced on Tuesday, 24 June 2025, follows months of repeated attempts by the committee to obtain truthful, complete information from the RAF Board and executive management to little avail.
The committee stated that it cannot perform its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting information.
Some of the issues of concern for the committee include, but are not limited to:
- 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.
The committee said these allegations point to failure by the Board to properly oversee management’s decisions and actions in line with their statutory mandate.
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The committee said it will approve the terms of reference on 1 July 2025, and the inquiry will take place after the August recess.
Chairperson of SCOPA, Songezo Zibi said: “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.”
