Parliament Launches Inquiry into Road Accident Fund: Financial Mismanagement and Delays Under Scrutiny

Parliament Launches Inquiry into Road Accident Fund: Financial Mismanagement and Delays Under Scrutiny

Date: July 12, 2025

The Road Accident Fund (RAF) is facing unprecedented scrutiny as Parliament has launched a comprehensive inquiry into its financial management, governance, and long-term sustainability. This move, confirmed at a recent sitting of the Standing Committee on Public Accounts (SCOPA), marks a critical turning point for road accident victims, medical service providers, and legal professionals who have long struggled with the fund’s inefficiencies.

Key Developments

• SCOPA Inquiry: Parliament’s SCOPA will investigate the RAF’s financial state, focusing on irregular, wasteful, and fruitless expenditure, the legality and transparency of accounting policies, and the operational impact of recent decisions.
• Governance Failures: The inquiry will examine the roles of the CEO, Board, and Minister, as well as the consequences for victims and service providers, including delayed payments to hospitals, clinics, attorneys, and claimants.
• Suspended CEO: RAF CEO Collins Letsoalo remains suspended on full pay and benefits, further highlighting the fund’s leadership crisis.

Stakeholder Reactions

According to Ngoako Mohlaloga, deputy chairperson of the Association for Protection of Road Accident Victims (APRAV): “This is more than a moment of reckoning—it’s a real chance for transformation. SCOPA’s firm, structured, and solution-focused stance gives us renewed hope. For over a decade, APRAV has raised the alarm about systemic dysfunction in the RAF. Today, the system itself is finally being held to account.”

Dr Katlego Mothudi, MD of the Board of Healthcare Funders, told eNCA: “It is good that SCOPA and the select committee for transport have started looking at the RAF. Public officials must be held accountable, and state institutions must respect court rulings.”

Why This Matters

In South Africa, victims of road accidents are legally entitled to compensation from the RAF. However, the fund has faced mounting criticism for delays in processing and disbursing payments, leaving many victims and service providers in financial limbo. The current inquiry is seen as a vital step toward restoring accountability and ensuring the RAF fulfills its mandate.

Other Recent Headlines

• Scopa Adopts Terms of Reference for Inquiry Into RAF Financial Matters (July 2, 2025)
• SCOPA Resolves to Launch Inquiry Into RAF Financial Matters
• High Court slams RAF for wasting millions on ‘chaotic’ cases (June 12, 2025)
• Parliament launches rare inquiry into Road Accident Fund (June 25, 2025)

Stay tuned for more updates as the inquiry unfolds and its impact on the future of the Road Accident Fund becomes clearer.