By Lehlohonolo Lehana.
Parliament’s Standing Committee on Public Accounts (SCOPA) described the situation at the Road Accident Fund (RAF) as “a horror story” in light of the observations.
The committee embarked on an oversight visit to the RAF offices in Pretoria on Friday, in absence of entity’s board and the CEO.
MPs were instead joined by the Deputy Minister of Transport Lisa Mangcu, during the visit.
“I was joking with colleagues earlier on, and we wanted to say if you had to draft a statement about this oversight about this place it would be a one-liner,” said Scopa chairperson Mkhuleko Hlengwa.
“And honourable (DA MP Benedicta) van Minnen said that ‘RAF is a car wreck full stop’, and I think it characterises what we saw.”
Having labelled the situation as “a horror story” , Hlengwa described the entity’s work environment as toxic.
“The culture of intimidation, and to us it comes as no surprise because our interaction with the executive and the board of RAF has not been positive.
“The stand-off with the board, the executive and the auditor-general is the clearest indication to date as to why the stand-off would arise because what we have seen today.”
Hlengwa was referring to a legal dispute between the RAF and the auditor general over her 2021 annual report which put the fund’s deficit at R13.5 billion.
The RAF failed in its efforts to block the report and subsequently dropped its legal action.
“The situation is dire. My observation is that RAF is in ICU with one foot in the grave and its saving grace is just maybe a staff compliment that wants to try. Other than that, RAF is leaderless and directionless because systems are being made as you go on improvisation to try and hold things together,” he added.
African National Congress (ANC) MP Alexandra Jennifer Beukes asked Mangcu to urgently intervene.
Mangcu assured Scopa that the department would meet Scopa’s 30-day deadline to respond to the watchdog committee’s concerns.
“We will make sure there is an apology that is extended to yourselves by the executive authority of this institution. So from my side, on behalf of the minister and myself, are determined to turn these issues around.”
The RAF is funded by a portion of the fuel levy and provides insurance to road users, including pedestrians, in the event of a vehicle accident. The fund has built up huge liabilities, which are not funded.