SCOPA demands accountability as RAF liabilities threaten to destabilise national fiscus

Members of Parliament’s Standing Committee on Public Accounts (SCOPA) are demanding that the Road Accident Fund (RAF) board and management be held responsible for ballooning liabilities totalling tens of billions of rand.

Committee members argue that specific decisions, including the unlawful alteration of claim registrations, have placed the entity at severe financial risk. These actions have already resulted in several court rulings against the fund.

The demands come as MPs review the first draft of SCOPA’s RAF oversight inquiry report, which is nearing completion. The inquiry has concluded its formal business and highlighted a staggering disparity between the fund's annual income and its mounting debts. The report underscores that the fund's annual income of approximately R50 billion is now significantly outweighed by its potential liabilities.

ActionSA MP Alan Beesley issued a stark warning during the deliberations, suggesting the financial fallout could be far worse than officially estimated.

"The RAF is broken. This is going to destroy the RAF but, more importantly, the impact on the fiscus and our country [will be severe]. I put a figure of R500 billion on the table, and many people laughed at me. It’s going to be more than R500 billion."

Committee member Patrick Atkinson emphasised that the current leadership must take accountability for the consequences of their policy choices. He specifically pointed to the continued enforcement of disputed administrative changes as a primary driver of the crisis.

Atkinson stated that by continuing to allow an illegal board notice to be implemented, management has created a situation where the massive liability has grown far bigger than it should have.

To determine the full extent of the damage, SCOPA members have recommended that the National Treasury be summoned to provide a definitive assessment of the RAF’s true liabilities. The committee seeks to understand the potential true cost to the South African taxpayer before the final report is tabled.