Parliament’s Standing Committee on Public Accounts (SCOPA) has officially launched a formal inquiry into the deeply troubled finances of the Road Accident Fund (RAF).
The decision comes as the RAF grapples with serious allegations of corruption. An explosive internal power struggle has reached the High Court.
The parliamentary probe follows a deluge of whistleblower reports and complaints alleging widespread maladministration, reckless expenditure, and serious financial misconduct at the embattled Road Accident Fund.
SCOPA to Investigate R1bn Supply Chain Irregularities
Committee Chairperson Songezo Zibi confirmed that the inquiry will be thorough, aiming to thoroughly investigate the fund's precarious financial state and governance failures. Of particular concern are whistleblower accounts. These detail potential supply chain irregularities exceeding R1 billion at the RAF, a critical issue that needs to be addressed.
For months, SCOPA has expressed its profound dissatisfaction with the Road Accident Fund's leadership. The MPs deemed the recent presentations by the fund's management and board before Parliament inadequate. This intensified calls for a full-scale investigation into the RAF's practices.
Zibi stated that the volume of complaints and related documentary disclosures to the committee regarding the RAF necessitates a thorough examination of them. He emphasised the committee's duty to ensure the institution operates within legal and constitutional frameworks. Furthermore, he stressed it must serve the public interest as intended regarding the RAF's operations.
Zibi assured that the inquiry would provide a fair platform for all parties. He said an investigation will also give everyone involved or implicated the opportunity to state their case under oath. They will receive a fair hearing before the committee draws its conclusions about the Road Accident Fund.
RAF CEO and Board Face Off in Court
The announcement of the parliamentary inquiry into the Road Accident Fund coincided with a dramatic legal showdown in the Pretoria High Court. RAF CEO Collins Letsoalo is currently challenging his suspension by the fund's board. The board cited "insubordination" as the primary reason for his removal.
The board claims that it suspended Mr Letsoalo for failing to appear before SCOPA. However, court documents reveal a deeper conflict within the RAF.
In an affidavit, RAF Board Chairperson Zanele Francois accused the CEO of deliberately omitting critical information from a presentation scheduled for Parliament on 28 May. According to Francois, the original presentation detailed payments made to a panel of law firms. It stated: "A total of R76m in 2023 and R104m in 2024." Mr Letsoalo allegedly removed the entire section before the meeting, impacting the Road Accident Fund's transparency.
Mr Letsoalo has denied the claims, accusing the board chair of misleading the court. The ongoing legal battle highlights the severe internal turmoil plaguing the organisation. It is tasked with compensating road accident victims, and Parliament now steps in to uncover the full extent of the rot at the Road Accident Fund.