MPs want RAF board, executive hauled before inquiry

THE Road Accident Fund (RAF) will be placed under intense scrutiny when the Standing Committee on Public Accounts (Scopa) undertakes  a full-scale inquiry into serious allegations against the board and its executive.

“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.” said   Scopa chairperson, Songezo Zibi . 

The decision followed months of repeated attempts to obtain “truthful, complete information from the RAF Board and executive management, to little avail”, he said.  

Among the committee’s most pressing concerns is the RAF’s failure to perform adequate background checks on senior appointments. Scopa  also raised alarm that individuals with troubling employment and disciplinary histories, including previous allegations of reckless financial decision-making were being entrusted with oversight of large sums of public money.

Compounding the concern was the RAF’s alleged refusal to disclose where these funds are held or for what purposes they were being used. 

According to Scopa, the fund has also failed to fill several critical senior management positions for an extended period, including the Chief Claims Officer, Head of Legal, and Head of People Management. 

Scopa also  noted that this leadership vacuum hampered the entity’s work because “decisions with a significant financial impact on the RAF are being taken, alternatively not being taken when they should”.

Failures of governance that not only compromise the RAF’s internal integrity but also undermine the rule of law and the constitutional authority of Parliament and oversight bodies such as Chapter 9 institutions, were also listed as pressing concerns.

“Numerous whistleblower accounts relating to supply chain irregularities involving more than R1 billion, while internal management controls appear to not 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 added.

The committee is expected to approve terms of reference on July 1 this year and the inquiry is planned for after the August recess.

Cape Times