The Standing Committee on Public Accounts (SCOPA) has officially adopted the terms of reference for an inquiry into the financial and governance challenges facing the Road Accident Fund (RAF), marking a significant escalation in parliamentary oversight of the embattled institution.
According to a statement released by Parliament on Monday, the inquiry will focus on RAF’s deteriorating financial health, adverse audit outcomes, and persistent governance failures — issues that have alarmed both the Auditor-General and civil society watchdogs in recent years.
SCOPA Chairperson Mkhuleko Hlengwa emphasized the gravity of the decision, stating that the Fund’s state of affairs “necessitates urgent intervention and transparency.” He added that the inquiry is expected to be comprehensive, calling on stakeholders including the RAF board, management, National Treasury, and the Department of Transport to account publicly.
The terms of reference adopted by SCOPA will guide the scope, timing, and accountability framework of the inquiry. These include:
- Investigating financial mismanagement and irregular expenditure
- Reviewing the sustainability of RAF’s operating model
- Examining the causes of repeated audit disclaimers
- Exploring the impact on accident victims and service providers
The RAF has faced repeated criticism for escalating liabilities — reportedly exceeding R400 billion — and legal battles over direct claims processing, which many argue have worsened payment delays to claimants.
In 2023, the Fund’s annual report revealed ongoing financial distress and an inability to table fully credible financial statements, prompting SCOPA to initiate direct parliamentary action.
Civil society groups have welcomed the move, saying the inquiry is long overdue. “There must be consequences for the mismanagement of an institution meant to protect road users,” said one transport advocacy group in a statement.
The inquiry will proceed in phases, with initial hearings expected in the coming months. Parliament has urged the public and stakeholders to cooperate and submit information that could assist the investigation.
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