Scopa blows the whistle on governance failures at Road Accident Fund

A draft report from South Africa's Parliament's Standing Committee on Public Accounts (Scopa) has revealed significant governance issues at the Road Accident Fund (RAF). The report highlights several concerning patterns, including long periods of employee suspensions, questionable recruitment practices, and an organizational structure review that left critical senior positions vacant for extended periods.

During a five-year span from 2020 to 2025, 188 RAF employees were placed on suspension, with some suspensions lasting over four years without being finalized. Additionally, despite CEO Collins Letsoalo claiming to have security clearance, he failed to submit the necessary documents for vetting by the State Security Agency.

The report also uncovered an influx of specialists into top positions at the RAF, many of whom were appointed without proper compliance to the RAF's policies and standard operating procedures. These specialists were involved in crucial policy decisions, such as a significant accounting policy change that led to the understatement of the Claims Liability by over R300 billion. Moreover, their appointments created a parallel management structure, undermining the RAF's operational divisions.