Scopa probe: Former RAF board members to account for financial turmoil

Parliament’s Standing Committee on Public Accounts (SCOPA) will hear testimony on Wednesday from former board members of the Road Accident Fund (RAF) regarding controversial decisions that led to a parliamentary probe.

The investigation includes the decision to do away with direct claims to the fund for motor vehicle accident compensation, a move that had compounded difficulties for claimants.

On Tuesday, the National Union of Metalworkers of South Africa (NUMSA) told the inquiry that former Chief Executive Officer (CEO) Collins Letsoalo had allegedly unfairly suspended 200 claims officers after accusing them of corruption.

NUMSA told the committee that RAF employees had to endure "heinous" working conditions at various offices and had borne the brunt of office furniture being attached due to the non-payment of court orders.

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Former RAF employee and NUMSA shop steward Sive Mbali testified that claims officers were assigned at least 2,000 cases each.

“Members were drowning in the workload and we were deeply concerned because while the employees were faced with this huge backlog, the employer had intentions of letting go of about 400 plus employees,” Mbali said.

The trade union is no longer recognised as a bargaining entity at the fund because it was determined that the RAF no longer fell within the transport sector, which NUMSA represents.

The union said that this decision had cost it at least R250,000 a month in lost membership fees.

Meanwhile, SCOPA Chairperson Songezo Zibi said former board members would have to account for decisions that had put the fund in financial turmoil.

“We also want to look into the abolishment of attorneys without a plan which has cost the RAF billions of rand in legal costs as well as default judgments,”

Parliament is still weighing up legal options against Letsoalo, who has rebuffed summonses to appear before the committee.