A high-stakes parliamentary inquiry into the embattled Road Accident Fund (RAF) heard stark revelations on Tuesday, including firsthand accounts of a corrupt “ecosystem” that encourages fraud and systemic delays leaving thousands of claimants in limbo.
The Standing Committee on Public Accounts (SCOPA) is conducting the investigation, focusing on allegations of misused public money and poor management. The committee first engaged with officials from the Department of Transport before turning to the RAF itself.
In a notable appearance, Deputy Minister of Transport, MGO, who is ironically the former chairperson of SCOPA, addressed the committee. He identified deep-rooted “socio-economic challenges” as a fundamental cause of the RAF’s massive claims backlog.
Deputy Minister MGO delivered a striking personal anecdote to illustrate the culture of corruption. He recounted how, after his brother was violently assaulted and hijacked, a person outside the hospital suggested he falsely claim the injuries were from a car accident to receive a payout from the RAF.
“That is part of the corruption embedded within the RAF ecosystem,” the Deputy Minister stated. “We must not lose sight of the fact that people see RAF as a money-making scheme.”
He also revealed that the ministry’s position is for the RAF to withdraw from its court action against the Auditor-General and find a “responsible way” to deal with its liabilities.
Following this, RAF spokesperson Mr. Mab conceded that “nothing is hunky dory at RAF.” He detailed the establishment of a contact centre as an admission of “decades old problems,” with some claims older than ten years.
A significant challenge, according to Mr. Mab, is that the fund cannot reach approximately 38% of claimants, often because their phone numbers have changed. The fund is now using tracing agents to locate them. Despite this, he asserted the contact centre has had over a million interactions and provides a better understanding of the backlog.
Another RAF official provided critical clarity on the complex prescription periods governing claims. They explained that victims have either two years (for hit-and-run accidents) or three years (for identified vehicles) to lodge a claim from the date of the accident. Once lodged, the claim must be processed within a five-year period.
The official also highlighted severe logistical problems, noting that registered mail from claimants can take up to two months to reach RAF offices due to issues with the South African Post Office.
The SCOPA chairperson emphasized the importance of the fact-finding mission, noting the well-documented issues of backlogs and millions of rands intended for beneficiaries that fail to reach them. The committee expects the inquiry to get to the bottom of these issues and provide a path toward resolution.
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