Standing Committee on Public Accounts (Scopa) chairperson Mkhuleko Hlengwa in Parliament on 26 April 2023. Photo: Gallo Images/Brenton Geach/Gallo Images)
Parliament’s Standing Committee on Public Accounts (Scopa) has painted a horror picture to describe the dire state of the Road Accident Fund (RAF).
Members of Scopa wrapped up the Gauteng leg of their oversight visits to RAF’s offices in Pretoria on Friday.
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The RAF, which is funded by a portion of the fuel levy, has hogged headlines for all the wrong reasons in recent times including failure and delays in the payment of claims.
The state-owned enterprise (SOE) compensates any person who has suffered injury arising from road accidents.
The agency also provides death insurance to victims of motor vehicle accidents, and their families.
Piles of boxes were seen at the RAF’s operations centre as MPs did their walkabout in the absence of the agency’s board and management on Friday.
Scopa chairperson Mkhuleko Hlengwa labelled the situation as “a horror story”.
“To say we are horrified would be an understatement to the extent of the crisis which besieges RAF, particularly in light of the observations that we have made today. Clearly this institution is in trouble,” he said.
Hlengwa highlighted that even RAF employees have described the work environment as toxic due to the culture of intimidation at the government organisation.
“For us it comes as no surprise because our interactions with the executives and boards has not been positive. I was joking with colleagues earlier on, saying to them that if we were draft a statement about this oversight to RAF today, it would be a one liner and Honorable [Benedicta] Van Minnen suggested something along the lines of ‘RAF is a car wreck’. I think it characterises what we saw,” he said.
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The committee also heard how some workers used makeshift chairs made of a boxes and a slab of wood to sit at their desk in order to carry out their duties.
“We have got employees who want to work… one lady brought her own chair because the sheriff has taken stuff here. She is using her own computer.
“There’s a huge disconnection between the board and the executives with the workers… some of them have said they don’t even know who the board members are,” Hlengwa said.
“The situation is dire. My observation is that RAF is in ICU with one foot in the grave and its saving grace is just maybe a staff compliment that wants to try. Other than that, RAF is leaderless and directionless because systems are being made as you go on improvisation to try and hold things together,” he added.
Scopa previously called for the dissolution of the board due to its litigation against the auditor-general.
RAF instituted legal proceedings against the auditor-general after the agency had been instructed by the office and National Treasury to revert back to the accounting standards it used before 2021.
The auditor-general’s move was supported by Scopa as the change in accounting practice resulted in RAF’s liability dropping by 90%.
Scopa, therefore, asked Minister of Transport Sindi Chikunga to provide a report to the committee on why the board should not be removed in light of RAF’s defiance.
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In addition, the RAF is also being probed by the Special Investigating Unit (SIU) for multiple irregularities.
On Friday, Democratic Alliance (DA) MP Alf Lees said RAF can be viewed as bankrupt due to the fund’s reported liability decrease.
“It just gets worse because in the end the taxpayers will have to come bail them out. Beneficiaries are not getting what is due to them which is costing RAF and the taxpayer massive amounts of money in legal fees, resulting from poor administration,” Lees said.
African National Congress (ANC) MP Alexandra Jennifer Beukes asked Deputy Minister of Transport Lisa Mangcu, who was part of the oversight visit, to urgently intervene.
Newly elected Economic Freedom Fighters (EFF) MP Mzwanele Manyi shared the same sentiments, saying it was time for the board to go.
“What has the executive authority been doing all this time? It’s not a matter that started yesterday because there is boxes everywhere. There’s files under the tables, the files on top of the tables, in the [hallways]… there’s even no space for cars to park,” Manyi said.
Furthermore, Hlengwa lamented the Transport Ministry’s failure to get rid of the board.
“We are past the point of calling for their dismissal. In April, we gave you 30 days to come back with reasons as to why the board should continue holding the fort and it was not done.
“So what follows then is that you leave us with no option, but to believe we must hold the ministry in contempt. It’s no longer negotiable or a discussion, you must appoint a new board,” Hlengwa told Mangcu.
“There may be a need for full scale forensic investigation for what is going on at RAF along the lines that the financial management is inconsistent with the law on one part, but also the HR matters are probably the worst. People are suspended willy-nilly without due process,” the Scopa chair said.
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