Road Accident Fund: SCOPA Oversight Enquiry into Maladministration

Posted 04 July 2025 Written by Acts Online
Category Parliament

Brought to you by SA Legal Academy: The Standing Committee on Public Accounts (SCOPA) has launched a formal oversight enquiry into the Road Accident Fund (RAF) following persistent allegations of maladministration and failure to comply with statutory financial reporting requirements.

In terms of the oversight powers vested in the National Assembly’s Standing Committee on Public Accounts (SCOPA), a notice has been issued for the commencement of an enquiry into the Road Accident Fund (RAF). The enquiry focuses on allegations of systemic maladministration and the entity’s failure to adhere to the Road Accident Fund Act, No. 56 of 1996 and the Public Finance Management Act, No. 1 of 1999 (PFMA).

The enquiry follows long-standing disputes regarding the RAF’s accounting treatments, specifically its departure from Generally Recognised Accounting Practice (GRAP) standards, which previously resulted in a disclaimer of opinion from the Auditor-General. SCOPA aims to investigate the root causes of financial instability and the impact of administrative decisions on the fund’s ability to settle claims.

Objectives of the Enquiry

  • Investigate allegations of financial mismanagement and irregular expenditure within the fund.
  • Assess the entity’s level of compliance with the Public Finance Management Act, No. 1 of 1999.
  • Evaluate the effectiveness of the RAF Board in exercising its fiduciary duties under the Road Accident Fund Act, No. 56 of 1996.
  • Review the impact of current litigation strategies and administrative changes on the fund’s solvency and claim backlog.

The committee has issued a call for information from members of the public and stakeholders who may have relevant evidence or insights into the fund’s operations. This evidence will be used to determine whether further regulatory or legislative intervention is required to stabilise the fund.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, legal professionals should monitor the enquiry for potential changes to the RAF’s administrative protocols that may affect professional practice.
  • For your business: Firms specialising in personal injury litigation must prepare for potential shifts in the RAF’s settlement procedures and payment timelines as SCOPA reviews the fund’s financial management and litigation strategies.
  • For your clients: Claimants should be advised that the ongoing regulatory scrutiny may lead to administrative changes in how claims are processed, potentially impacting the duration of the settlement process and the availability of funds for payouts.

Originally published at https://legalacademy.co.za/news/read/road-accident-fund-parliamentary-oversight-enquiry-into-allegations-of-maladministration

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