Simon Nare
The Road Accident Fund (RAF) changed its accounting system in a bid to contain its exploding liabilities and avoid collapse, Parliament’s Standing Committee on Public Accounts (SCOPA) heard this week.
Former acting chief financial officer Boitumelo Mabusela told MPs the fund had reached a point where it could no longer continue operating while remaining technically insolvent year after year and watching its liabilities rise sharply.
Mabusela said the Accounting Standards Board (ASB) had given the RAF the go-ahead to explore a new accounting framework.
The ASB, however, could only advise and had no legal power to block the fund from adopting a different system.
Mabusela, who said she authored the new accounting policy and obtained approval from then chief executive Collins Letsoalo, told the committee that the ballooning liability was the main driver for the switch. It was unacceptable, she said, that the RAF’s liabilities exceeded those of
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