Road Accident Fund in the Spotlight: SCOPA Inquiry and CEO Suspension – June 27, 2025

Road Accident Fund in the Spotlight: SCOPA Inquiry and CEO Suspension – June 27, 2025

Date: June 27, 2025

Parliament Launches Full-Scale Inquiry into RAF

The Standing Committee on Public Accounts (SCOPA) has initiated a comprehensive inquiry into the Road Accident Fund (RAF) following mounting allegations of financial mismanagement, wasteful spending, and governance failures. SCOPA is expected to approve the terms of reference for the inquiry on July 1, 2025, with the investigation set to begin after the August recess.

The RAF has responded by highlighting recent improvements:

• Claimant payments rose to 83% of claims costs in 2023/24, while administrative costs dropped to 17%.
• Performance against objectives improved from 57% in 2019/20 to 85% in 2023/24.
• The Auditor-General’s 2023/24 audit found no material findings on performance information or compliance, though there was an adverse opinion on financial statements due to a disagreement over accounting policy.
• The RAF has established dedicated Forensic Investigations and Ethics divisions, and maintains an independent ethics and fraud hotline.

Read more: IOL: Road Accident Fund addresses SCOPA inquiry

RAF CEO Collins Letsoalo’s Suspension Upheld by Court

In a separate but related development, the Pretoria High Court has dismissed RAF CEO Collins Letsoalo’s application to have his suspension set aside. Letsoalo was suspended by the RAF board on June 3, 2025, after failing to attend a parliamentary committee meeting. The court’s decision means Letsoalo remains suspended, adding to the Fund’s ongoing leadership and governance challenges.

Read more: BusinessLIVE: Collins Letsoalo loses court battle against RAF

What’s Next for the RAF?

The coming months will be critical for the RAF as Parliament’s inquiry proceeds and the Fund continues to address both operational and leadership issues. Stakeholders and the public will be watching closely for outcomes that could shape the future of road accident compensation in South Africa.

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