The Standing Committee on Public Accounts (SCOPA) has launched an inquiry into the Road Accident Fund (RAF) to probe allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct
This after committee chairman Songezo Zibi announced on Tuesday that a comprehensive inquiry has been agreed upon and will commence following the parliamentary recess in August.
The inquiry will probe among others numerous whistle-blower reports detailing supply chain irregularities involving more than R1 billion, amid concerns that internal management controls are not being enforced.
Zibi said there has been persistent challenges in obtaining complete and accurate information from the RAF board and executive management despite numerous attempts over several months.
He said that the committee’s decision to launch the inquiry, made on Tuesday, aims to address issues of maladministration, financial mismanagement, wasteful expenditure, and other financial misconduct within the entity.
“This decision follows months of repeated attempts by the committee to obtain truthful, complete information from the RAF Board and executive management to little avail,” said Zibi.
“The committee cannot perform its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting information.”
He said some of the issues of concern for the committee include but are not limited to: failure to perform adequate background checks on senior management and executive appointments.
These management personnel and executives had access to and managed significant sums of public funds despite having a deeply concerning employment and disciplinary history involving allegations of reckless financial management decisions.
Other aspects to be probed were subsequent refusal by the RAF to disclose to the committee where such funds were kept and for what purpose.
Also, failure to appoint critical officials such as a chief claims officer, head of claims operations, head of legal, chief corporate support officer and head of people management.
These vacancies had not been filled for an unacceptably long time while decisions with a significant financial impact on the RAF were being made, alternatively not being taken when they should.
So too will be apparent failures of governance with a direct impact on the rule of law, the authority and powers of parliament as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people.
He said these allegations pointed to failure by the board to properly oversee management’s decisions and actions in line with their statutory mandate, adding that the committee will approve terms of reference on 1 July 2025, and the inquiry will take place after the August recess.
“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,” he said.
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