Road Accident Fund Considers Withdrawing from Court Battle with Auditor-General: Key Updates for June 12, 2025

Road Accident Fund Considers Withdrawing from Court Battle with Auditor-General: Key Updates for June 12, 2025

Latest News: The Road Accident Fund (RAF) in South Africa is considering withdrawing from its high-profile court case against the Auditor-General, following mounting pressure from the Transport Department and concerns over escalating legal costs and compliance with accounting standards.

During a recent meeting with the Portfolio Committee on Transport, RAF Board Chairperson Zanele Francois confirmed that the Transport Department has given the RAF 21 days to conduct a risk assessment and impact analysis. This is to explore alternative, amicable solutions to the ongoing dispute over the Auditor-General’s audit finding, which criticized the RAF’s use of International Public Sector Accounting Standards 42 instead of the South African Standards of Generally Recognised Accounting Practice.

The RAF has already spent R10.8 million in legal fees on this matter. The Transport Ministry, including Minister Barbara Creecy and Deputy Minister Mkhuleko Hlengwa, has made it clear that they do not support further legal action and have warned the RAF board that continued litigation could trigger a financial misconduct investigation under the Public Finance Management Act.

There has also been internal debate within the RAF board regarding the decision to escalate the case to the Constitutional Court, with some board members expressing discomfort and dissent. The Ministry has reiterated that the RAF should adhere to approved accounting standards and resolve the dispute outside of court.

What This Means: The potential withdrawal from the court case could save the RAF significant legal costs and help restore public trust. For claimants and the public, this development may lead to improved governance and a renewed focus on the RAF’s core mandate of compensating road accident victims.

Stay tuned for more updates on the Road Accident Fund and related news in South Africa.