By Roy Cokayne.
The Supreme Court of Appeal (SCA) has declined an application by the Road Accident Fund (RAF) against a judgment by the High Court in Pretoria dismissing the RAF’s legal challenge against the Auditor-General’s (AG) disclaimer of the fund’s 2020/21 annual financial results.
Deputy Minister of Transport Mkhuleko Hlengwa on Thursday welcomed the SCA judgment declining to hear an appeal by the RAF regarding the accounting standards to be used in its audit process, and described the judgment as an indictment of the RAF board.
“It has been the Ministry’s firm position that this matter should never have escalated to the courts in the first place.
“Valuable time and resources have been wasted unnecessarily. I, therefore, do not expect any further legal action on this issue,” he said.
Despite repeated guidance from the Transport Ministry, the RAF has failed to comply.
Hlengwa emphasised that the issue must now be resolved in accordance with the Accounting Standards Board’s (ASB) guidance.
“This matter has unnecessarily dragged on for too long.
“The RAF board must be mindful of its fiduciary responsibilities and act in the collective interests of the entity.
“I expect the RAF to comply with the AGSA and ensure RAF’s alignment with the appropriate accounting framework,” he said.
‘Fishing expedition’
Hlengwa, who was chair of parliament’s standing committee on public accounts (Scopa) prior to being appointed deputy minister of transport, previously castigated the RAF in committee meetings.
In a Scopa meeting in March 2024, Hlengwa suggested the committee institute action to declare the RAF board members delinquent directors for this “fishing expedition” of oversight by the courts related to the AG’s RAF audit disclaimer.
Minister of Transport Barbara Creecy confirmed in October 2024 that she had written a letter to the RAF requesting the board not to continue with the legal challenge to the AG’s disclaimer of the fund’s 2020/21 annual financial results.
The issue surfaced again in a Scopa meeting last month, where Hlengwa reiterated the Department of Transport (DoT) does not support this cause of action of being in court insofar as the RAF and the AG are concerned.
“I think that has been made abundantly clear to the RAF in this forum and other forums.
“It remains our position that this matter should be out of court and that the processes, including but not limited to the engagement with the ASB, must be followed.
“This matter has been in court for a protracted period of time, and in every instance, the RAF has not received a favourable court outcome, and that remains a fundamental concern to us in the Ministry,” he said.
RAF Head of Corporate Communications McIntosh Polela said on Friday the RAF management is studying the judgment.
“There will be a board meeting to determine the way forward, “he said.
Dismissal after dismissal
The RAF previously filed an application for leave to appeal the High Court in Pretoria judgment, which was dismissed, resulting in the fund then petitioning the SCA for leave to appeal, which was also dismissed.
The RAF then appealed to the Judge President of the SCA for reconsideration of the matter.
The matter appeared before SCA Acting Deputy President Ashton Schippers on 31 March 2025.
The order issued by Judge Schippers on Thursday said: “Having considered the notice of motion and the other documents filed, it is ordered that the application in terms of s17(2)(f) of 2013 is dismissed with costs for the reason that the applicant [RAF] has not established that if the decision to refuse leave to appeal is not reconsidered or varied a grave failure of justice would result or administration of justice would be brought into disrepute.”
The RAF cited the AG, ASB, and Creecy as respondents in the matter.