The Road Accident Fund (RAF) has formally acknowledged and responded to Parliament’s Standing Committee on Public Accounts (SCOPA) following its decision to initiate a full inquiry into alleged maladministration, financial mismanagement, and reckless expenditure within the organisation.
In a media statement, the RAF reaffirmed its respect for SCOPA as a key accountability mechanism within the National Assembly and committed to fully cooperating with the inquiry. “We will continue to account to the people of South Africa through this important organ of Parliament,” the Fund stated.
While facing scrutiny, the RAF highlighted that financial challenges are deeply rooted in structural issues that date back to its founding in 1946. Referencing previous inquiries — including the 1992 Melamet Commission — the Fund pointed to a long-standing mismatch between its funding model and benefit structure as the core cause of its ongoing financial strain.
Operational Improvements Cited
Despite the historical challenges, the RAF reported measurable improvements in its performance and financial efficiency. According to the 2023/24 audited annual report, the Fund increased the proportion of funds going directly to claimants from 66% in 2018/19 to 83% in the most recent financial year, while reducing administrative costs to just 17%.
Additionally, the RAF says it achieved 85% of its predetermined performance targets in 2023/24 — a notable increase from 57% in 2019/20. The Auditor-General of South Africa (AGSA) also found no material issues with the Fund’s strategic outcomes related to transformation, system modernisation, and governance.
Governance and Anti-Corruption Measures
The RAF stated that it has strengthened its control and governance environment through internal Forensic Investigations and Ethics units. An independent ethics and fraud hotline is available for both staff and the public to anonymously report misconduct.
The Fund has also launched a modern Contact Centre and digital platforms to address queries from over one million claimants, using channels such as phone calls, SMS, social media, and a WhatsApp chatbot.
Strategic Review and the Way Forward
Looking ahead, the RAF confirmed that its 2025–30 Strategic Plan will focus on refining its operations and bridging existing gaps. As part of this process, it voluntarily submitted its 2025/26 Annual Performance Plan for independent review by the AGSA.
Nonetheless, the RAF warned that a legislative overhaul is essential to ensure its long-term sustainability. “The most urgent task required to ensure financial and operational sustainability for the Fund is a legislative review,” the Fund emphasized.
The full SCOPA inquiry is expected to investigate a range of issues, including financial governance, compliance with procurement regulations, and RAF’s ongoing transformation efforts.
