The Road Accident Fund (RAF) is in a state of crisis, officials told Parliament’s Standing Committee on Public Accounts (Scopa) this week. The fund is structurally insolvent and unable to clear a massive backlog of claims, some dating back a decade. This admission came during the first days of a wide-ranging parliamentary inquiry into the embattled entity.
The inquiry aims to investigate allegations of maladministration, financial impropriety, and mismanagement. Deputy Transport Minister Mkhuleko Hlengwa acknowledged the severity of the situation.
“We are here because there’s a crisis,” he stated, confirming the ministry’s support for the Scopa-led process. The RAF inquiry is set to run until early November.
The committee heard that the fund’s operational model is unsustainable. Its financial woes are compounded by systemic issues, including duplicate payments. Officials explained these often occur when claimants, frustrated by delays, secure court orders to attach the RAF’s bank accounts after a payment process has already started internally.
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Decades of dysfunction under scrutiny
Scopa chairperson Songezo Zibi has described the inquiry as a precedent-setting exercise in parliamentary oversight. He stated that the committee would push for harsh consequences for any wrongdoing found. This could include declaring directors delinquent and pursuing criminal investigations.
Zibi confirmed he had faced threats to his safety ahead of the hearings. The RAF inquiry will examine contracts and call previous boards dating back to 2019 to account for their decisions.
In response to the growing crisis, Transport Minister Barbara Creecy appointed a new interim board in August. Its mandate is to restore governance and stability. The Department of Transport is also finalising the Road Accident Benefit Scheme (RABS) Bill. This legislation proposes a new no-fault compensation system to replace the current fund.
Officials detailed efforts to manage the crisis, including a backlog campaign that has processed claims from as far back as 2014. The fund has also expanded its contact centre capacity to handle over a million customer interactions since 2023.
Image via Legal Advice.
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