Parliament Launches Inquiry into Road Accident Fund Over Financial Mismanagement and Delays

Parliament Launches Inquiry into Road Accident Fund Over Financial Mismanagement and Delays

Date: July 13, 2025

The Road Accident Fund (RAF) is under intense scrutiny as Parliament has initiated a comprehensive inquiry into the fund, citing serious concerns over governance failures, financial mismanagement, and the institution’s long-term sustainability.

The Standing Committee on Public Accounts (SCOPA) confirmed the inquiry at a recent sitting in Cape Town, marking a pivotal moment for road accident victims, medical service providers, and legal professionals who have long suffered under the fund’s mismanagement.

SCOPA will investigate the financial state of the RAF, including irregular, wasteful, and fruitless expenditure, the legality and transparency of RAF accounting policies and reporting systems, and the operational impact of recent decisions. The inquiry will also examine the roles of the CEO, Board, and Minister, as well as the lived consequences for victims and service providers, including delayed payments to hospitals, clinics, attorneys, and claimants.

Association for Protection of Road Accident Victims (APRAV) deputy chairperson, Ngoako Mohlaloga, commented: “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.”

In South Africa, victims of road accidents are legally entitled to compensation from the RAF. However, the Fund has faced ongoing criticism for delays in processing and disbursing payments. Meanwhile, the RAF CEO, Collins Letsoalo, remains suspended on full pay and benefits.

This inquiry is seen as a significant step toward accountability and reform, with the potential to improve outcomes for all stakeholders affected by the RAF’s operations.

Keywords: Road Accident Fund, RAF, South Africa, SCOPA, Parliament, financial mismanagement, delayed payments, governance failures

Source: IOL News