Road Accident Fund’s legal action was ‘a waste of time and resources’

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

The Deputy Minister of Transport, Mhlukulo Hlengwa, has welcomed the SCA judgment, saying 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 settling matters legally, amidst a long-standing dispute between the RAF and the Auditor-General of South Africa (AGSA) over the appropriate accounting standards for auditing the entity.

Hlengwa, meanwhile, said the AGSA was rightly adhered to the Generally Recognised Accounting Practice (GRAP) standard, whereas the RAF insisted on being audited 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 disclaimed audit outcomes.