RAF dealt a major blow in audit standards battle

THE Supreme Court of Appeal (SCA) has declined an application by the Road Accident Fund (RAF) to hear an appeal regarding the accounting standards to be used in its audit process.

- ZELDA VENTER

Welcoming the judgment, Deputy Minister of Transport, Mkhuleko Hlengwa said the matter has unnecessarily dragged on for too long. The RAF was recently asked during a meeting of the standing committee (Scopa) how long it was prepared to continue getting negative audits while pursuing the matter legally. The SCA judgment comes amid a longstanding dispute between the RAF and the Auditor-General of South Africa (A-G) over the appropriate accounting standards for auditing the entity.

Hlengwa said, while the A-G has rightly adhered to the Generally Recognised Accounting Practice (GRAP) standard, as results based on International Public Sector Accounting Standard (IPSAS) 42. As a result of its insistence on applying IPSAS 42, the RAF has consistently received adverse and disclaimer audit outcomes. Hlengwa described the judgment as an indictment of the RAF's position.