SCOPA Launches Inquiry into Road Accident Fund Over Financial Misconduct

The Standing Committee on Public Accounts (SCOPA) has resolved to initiate a full-scale inquiry into the Road Accident Fund (RAF) following a series of damning allegations of maladministration, reckless expenditure, and financial misconduct. The decision comes in response to mounting whistleblower complaints, questionable appointments, and evasive conduct by the RAF's leadership.

The inquiry, set to commence after Parliament’s August 2025 recess, aims to restore accountability within the embattled entity tasked with compensating victims of road accidents. SCOPA will formalize the inquiry's terms of reference on 1 July 2025, laying the groundwork for public hearings and sworn testimonies.

Evasion, Irregularities, and Leadership Failures

SCOPA Chairperson Songezo Zibi emphasized the committee’s frustration over the RAF’s continued failure to provide truthful and comprehensive information.

“The committee cannot perform its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting documents,” said Zibi.

Key allegations and concerns raised include:

• Questionable executive appointments: SCOPA has flagged the failure to conduct proper background checks on senior executives and managers with problematic disciplinary records. Despite their history, these individuals were entrusted with overseeing large sums of public funds.

• Non-disclosure of financial information: The RAF has repeatedly refused to reveal where substantial funds are held or the purpose for which they are earmarked, undermining financial transparency.

• Vacant critical posts: For an extended period, the RAF has operated without key officials, including a Chief Claims Officer, Head of Legal, and Heads of Corporate Support and People Management—raising red flags about decision-making and operational efficiency.

• Governance breakdowns: The RAF's failures have been described as a threat to constitutional oversight, potentially undermining the authority of Parliament and statutory watchdog bodies.

• R1 billion in supply chain irregularities: Numerous whistleblower accounts have brought forward alarming evidence of procurement abuses and poor internal controls, suggesting serious lapses in fiduciary oversight by both management and the Board.

Inquiry to Offer Due Process and Accountability

SCOPA underscored that the inquiry will provide all implicated individuals the opportunity to testify under oath and explain their roles. This will enable the committee to make evidence-based recommendations aimed at restoring integrity within the RAF and protecting public interest.

“These allegations point to failure by the Board to properly oversee management’s decisions and actions in line with their statutory mandate,” said Zibi.

The committee further noted the sheer volume of disclosures and complaints, describing them as too significant to ignore. SCOPA’s decision aligns with its constitutional responsibility to hold state institutions accountable for public expenditure.

Broader Implications and Future Oversight

The Road Accident Fund has long been plagued by financial and operational instability, with past reports highlighting concerns about its sustainability, claims backlogs, and legal liabilities. SCOPA’s inquiry is expected not only to examine the latest allegations but also to revisit systemic issues that have allowed such dysfunction to persist.

Stakeholders across civil society, including legal professionals, road safety advocates, and public finance experts, are expected to closely monitor the proceedings. The outcome of the inquiry could prompt structural reforms, including changes to RAF’s funding model, corporate governance, and legislative mandate.

As South Africans continue to rely on the RAF for essential post-accident relief, Parliament’s decision to act decisively could mark a turning point in ensuring that the institution fulfills its public service obligations with efficiency, legality, and integrity.