Oversight inquiry into Road Accident Fund: 'We are here because there's a crisis'

Issues facing the Road Accident Fund (RAF), and also its claims submission process, were under scrutiny at the Standing Committee on Public Accounts (SCOPA) oversight inquiry, which began on Tuesday.

The oversight inquiry is looking into the evidence of, and allegations of maladministration, financial impropriety, and the misuse of public funds at the RAF.

The oversight inquiry is a legally mandated process to allow Parliament to conduct its oversight in a structured manner, but it is neither a judicial nor a quasi-judicial process and is not adversarial in nature.

Deputy Transport Minister, Mkhuleko Hlengwa, provided some context into the enquiry, saying that the process is running parallel to legislative review and reform of the RAF “as part of our response to ensuring that the entity works in a manner which is fit for purpose”.

“We are at the tail end of, if not having finalised the RABS Bill, to ensure that it now goes to Cabinet for onward transmission, to Parliament, to, amongst others, deal with the substantive issues which are of concern to the entity.”

The Bill provides for a new scheme and a new administrator, called the Road Accident Benefit Scheme Administrator (RABS), which will replace both the Road Accident Fund (RAF) and the current compensation system administered by the RAF.

Hlengwa added that they have an interim board in place, but have advertised for a substantive board, and that the process is fully under way.

“It is my expectation that should a leadership transition take place during this time, the committee will also be patient with us as we try to regularise the governance and protocols within the RAF.

“We have also advertised for executive positions, including but not limited to the CEO position, which closed on the 28th of September. Filling of vacancies at this time is also a priority and in process.

“I don't anticipate that those positions will be filled in the midst of this enquiry, but in the event that a leadership change takes place. It is our plea that the committee will bear with us in that endeavour,” Hlengwa said.

“We are working towards ensuring that we meet Parliament's deadlines.”

Hlengwa added that the department intends to cooperate with the inquiry.

He said that they have appeared before the enquiry on numerous occasions to explain the difficulties, and that “we have and the decisions that we have taken as part of regularising the RAF ecosystem”.

“RAF is in crisis, and we have taken decisions, including but not limited to the dissolution of the board; we've got an interim board. We've appointed departmental representatives. We've got a legislative review under way, precisely because there's a recognition of the material facts before us in the ministry that we've got a crisis.

“We don't need anybody else to tell us that, and our participation in this inquiry is to uphold the constitutional injunction of accountability and oversight, and we are subjecting ourselves to it.

“I'm not here for headlines; we are here because there's a crisis,” Hlengwa said.

The RAF officials who appeared before SCOPA included several people who focused on explaining the claims process and what is currently being done to handle claims.

The officials included Acting Chief Claims Officer Tshepo Moatshe, Acting Regional General Manager (East London Office) Lance Johnstone, Acting Regional General Manager (Pretoria) Sibongile Mgwali, Acting Senior Manager (Pretoria) Tebogo Tshaka, and Acting Strategy and Transformation Officer Rodney Mkhabela.

The committee heard that a total of 105,039 claims were pre-assessed between July 4, 2022, and March 31, 2025. Of these, 75,990 (72%) were found to be non-compliant, while 29,049 (28%) were found to be fully compliant.

The officials also flagged several issues, including the delays that arose from the Post Office submissions, duplicitous lawyers who don’t communicate correctly with their clients when it comes to claim submissions, and the over-reliance on the idea that they can obtain more money from the RAF than what is offered.

The committee also heard about efforts being taken to upscale tracing of individuals in the system to ensure that, regardless of when claims were submitted, efforts are under way to resolve backlogged cases.

The officials also briefly touched on the court cases that have arisen from the RAF’s forms, but SCOPA Chairperson Songezo Zibi was hesitant to get into the weeds on the matter as the committee is expected to hear from lawyers and the Special Investigating Unit, who will provide more details and context.

The Office of the Chief Procurement Officer, the Office of the Accountant General, and the Auditor-General of South Africa are expected to appear before SCOPA on Wednesday.

theolin.tembo@inl.co.za