The Standing Committee on Public Accounts (Scopa) said on Thursday the second oversight visit to the Road Accident Fund (RAF) has again exposed deficiencies that render governance at the entity weak and unworkable.
“The committee noted that staff morale is low and workers are subject to heightened levels of intimidation, which the RAF management has been unable to address,” committee chairperson Mkhuleko Hlengwa said.
Hlengwa added that while Scopa was convinced of the need for consequence management, that should not be done maliciously nor in a manner that targeted individuals who highlighted possibly controversial challenges at the RAF.
“The committee expressed its unhappiness about the poor situation at the RAF and called on RAF management to continue with disciplinary processes where necessary,” he said.
Scopa undertook the oversight visit to RAF this week following a previous visit in June to investigate a dispute between RAF and auditor-general Tsakani Maluleke over the entity’s disclaimer audit opinion for the 2021-22 financial year.
In her audit report, Maluleke said she was unable to obtain sufficient appropriate audit evidence for claims liabilities totalling R27.8 billion and claims expenditure amounting to R37.1bn as disclosed in the financial statements.
She also said RAF has amended the accounting policy to recognise claims liabilities and claims expenditure.
Hlengwa said the committee remained concerned about the poor document management that was apparent through the large volume of boxes filled with claims that line the RAF office walls, which indicated that storage facilities have not been prioritised.
He also said Scopa was disappointed by the endless list of challenges that prevailed at the entity.
“The committee welcomes the necessary legislative reforms that the RAF has highlighted but said that the major challenge at RAF is a leadership collective that refuses to accept any responsibility or accountability for anything that prevails at the institution.
“These include the disclaimer audit opinion, the inability to pay within the prescribed deadlines, various liabilities and court orders attaching assets.”
Scopa also noted the RAF management’s dictatorial leadership style, which created an environment that was unfavourable for the fund to successfully meet its objectives.
Hlengwa said the committee is scheduled to meet with Minister of Transport Sindisiwe Chikunga and the board of RAF on August 30 to discuss the issues arising from its oversight visits and outstanding matters relating to the 2021-22 financial year.
Cape Times
