Parliament Launches Inquiry into Road Accident Fund Amid Financial Mismanagement and Governance Crisis

Parliament Launches Inquiry into Road Accident Fund Amid Financial Mismanagement and Governance Crisis

Date: July 29, 2025

The Road Accident Fund (RAF) is under intense scrutiny as Parliament has initiated a comprehensive inquiry into the fund’s governance failures, financial mismanagement, and long-term sustainability. This move comes after years of mounting criticism from road accident victims, medical service providers, and legal professionals who have faced significant delays in compensation and payments.

Key Developments

• Parliamentary Inquiry: The Standing Committee on Public Accounts (SCOPA) is leading an investigation into the RAF’s financial state, focusing on irregular, wasteful, and fruitless expenditure, as well as the legality and transparency of its accounting and reporting systems.
• Governance and Leadership: The inquiry will examine the roles of the CEO, Board, and Minister of Transport. Recently, the Minister dissolved the RAF board, and CEO Collins Letsoalo remains suspended on full pay.
• Impact on Stakeholders: The dysfunction within the RAF has led to delayed payments to hospitals, clinics, attorneys, and claimants, affecting thousands of South Africans who rely on the fund for compensation after road accidents.
• Stakeholder Reactions: Organizations such as the Association for Protection of Road Accident Victims (APRAV) and the Board of Healthcare Funders have welcomed the inquiry, calling it a much-needed step towards accountability and reform.

Why This Matters

The RAF plays a critical role in providing compensation to road accident victims in South Africa. The current crisis has highlighted the urgent need for transparency, effective governance, and financial accountability to ensure the fund can fulfill its mandate. The outcome of Parliament’s inquiry could shape the future of road safety compensation and restore public trust in the institution.

Stay tuned for further updates as the inquiry progresses and new developments emerge.