RAF's R230bn scam the worst in history

THE Road Accident Fund (RAF), tasked with protecting millions of road-crash victims, is facing its worst financial and governance crisis in history. Parliament's Standing Committee on Public Accounts (Scopa) this week confirmed unlawful conduct within the RAF, validating more than a decade of warnings from the Association for the Protection of Road Accident Victims (Aprav).

- MAYIBONGWE MAQHINA and SIZWE DLAMINI

The findings reveal manipulations of liabilities, illegal accounting practices, and the erasure of 80 000 legitimate claims, amounting to hidden liabilities of R230 billion. The crisis has denied justice to hundreds of thousands of South Africans.

Scopa is set to summon former CEO of the Road Accident Fund (RAF) Collins Letsoalo to appear before its inquiry, following his alleged failure to respond to a final letter of demand aimed at securing his voluntary appearance.

The parliamentary inquiry is probing maladministration, financial impropriety, and misuse of public funds at the RAF.

Since the commencement of testimonies earlier this month, several witnesses have implicated Letsoalo in key decisions detrimental to the entity's well-being.

The former CEO, whose contract was not renewed a few months ago, previously challenged the authority of Scopa to conduct the parliamentary inquiry into the affairs of the RAF, preferring the Portfolio Committee on Transport to take charge.

At its meeting held on Thursday, parliamentary legal advisor Fatima Ebrahim updated members of the committee on Letsoalo's non-response, indicating that he had not yet replied to the final opportunity for voluntary appearance offered to him.

In light of Letsoalo's silence, Scopa chairperson Songezo Zibi proposed that the committee move forward with issuing a summons while simultaneously seeking the concurrence of National Assembly Speaker Thoko Didiza.

"One of the options we got is if, in the intervening period, once he secures a subpoena, Mr Letsoalo presents himself before the committee. We will treat it as a voluntary appearance if he gets in touch."

DA MP Patrick Atkinson said Letsoalo was completely central to everything the committee was doing, and just about every question they got could be linked back to him.