Latest news with #StandingCommitteeonPublicAccounts
IOL News
5 days ago
- Business
- IOL News
Road Accident Fund acknowledges Scopa's inquiry into its operations
The Standing Committee on Public Accounts has resolved to launch a full committee inquiry into allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct at the Road Accident Fund. Image: File The Road Accident Fund (RAF) said on Friday it noted the decision of the Standing Committee on Public Accounts (Scopa) to institute a full committee inquiry into its affairs. This comes days after Scopa resolved earlier this week to launch a full committee inquiry into allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct at the RAF. The decision was taken after attempts by the committee to obtain truthful, complete information from the RAF board and executive management came to no avail. The RAF said in a statement it respected Scopa as an accountability body which derives its functions and powers from Rule 245 of the rules of the National Assembly. 'We will continue to account to the people of South Africa through this important organ of Parliament. We reiterate and put emphasis on what we have already reported in the RAF annual reports for the last three years, that the RAF has been financially unsustainable since its establishment in 1946.' The RAF stated that it has been the subject of multiple commissions of inquiry, and the common thread across all commissions' findings has been the disconnect between the funding model and the benefit structure. 'The unsustainable funding and operating models were further compounded by an increase in administrative costs, driven mainly by legal and medical costs,' said the accident insurance fund. In a memorandum prepared for Scopa, committee Chairperson Songezo Zibi cited issues related to the organogram and vacancies at the RAF. Zibi also mentioned the submission of inaccurate, misleading, and/or false information to Parliament by the entity. There were also issues related to whistle-blower reports on two media services contracts worth R1 billion, RAF's acquisition of offices, as well as litigation against the Auditor-General and matters of rule of law. 'The information I set out raises numerous and serious concerns about corporate governance at the RAF,' he said. Scopa's secretariat is expected to draft the terms of reference for the inquiry to be considered by the MPs on July 1 and then use the period afterwards to prepare for the inquiry. The DA wants the inquiry to cover all of the outrageous financial mismanagement identified over the past months and years at the RAF. In the letter to Zibi, DA MP Patrick Atkinson said they welcomed the resolution to initiate the parliamentary inquiry into the worsening crisis at the RAF. 'However, for this inquiry to be meaningful and in the public interest, it must be comprehensive in scope. A surface-level examination will fail to address the systematic mismanagement, misconduct and abuse of public funds that have defined the RAF's recent history,' Atkinson wrote. The RAF defended its use of litigation against the Auditor-General, which will form part of the inquiry. The entity has pursued the legal action despite being advised not to do so by the Transport Department. The RAF said it is only in the audit of financial statements that the disagreement with the Auditor-General of South Africa on the accounting policy change resulted in an adverse opinion. It also said it has internal forensic investigations and ethics divisions to ensure proper and transparent management of corrupt and unethical practices. 'An independently managed ethics and fraud hotline is available for staff and stakeholders to anonymously report any unethical and corrupt practices. Furthermore, the introduction of the RAF Contact Centre will go a long way in ensuring that claimants' queries are addressed.' The RAF said despite its positive strides, it continued to manage challenges associated with a transforming organisation. 'The 2025–30 strategic plan presents an opportunity to optimise areas that have worked and to improve where gaps still persist. To this end, the RAF proactively subjected the 2025/26 annual performance plan to an independent review by the AGSA. 'The RAF reiterates that the most urgent task required to ensure financial and operational sustainability for the Fund is a legislative review.'
IOL News
24-06-2025
- Business
- IOL News
SCOPA launches inquiry into Road Accident Fund over mismanagement allegations
The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF Image: File The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF) following mounting allegations of financial mismanagement, wasteful spending, and governance failures. According to the committee, this decision "follows months of repeated attempts by the committee to obtain truthful, complete information from the RAF Board and executive management to little avail". SCOPA is expected to approve the terms of reference for the inquiry on July 1, 2025, with the investigation set to commence after the August recess. IOL previously reported the suspended CEO Collins Letsoalo also held the position of Chief Claims Officer while he was at the helm of the entity and received an increased bonus for the additional duties. The Committee also expressed its frustrations, stressing it cannot perform "its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting information". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Among SCOPA's key concerns are: Failure to perform adequate background checks on senior management and executive appointments who nonetheless have access to and manage significant sums of public funds despite having a deeply concerning employment and disciplinary history involving allegations of reckless financial management decisions. Subsequent refusal by the RAF to disclose to the committee where such funds are kept and for what purpose. Failure to appoint critical officials such as a Chief Claims Officer, Head of Claims Operations, Head of Legal, Chief Corporate Support Officer, Head of People Management etc , for an unacceptably long time while decisions with a significant financial impact on the RAF are being taken, alternatively not being taken when they should. Apparent failures of governance with a direct impact on the rule of law, the authority and powers of Parliament, as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people. Numerous whistleblower accounts relating to supply chain irregularities involving more than R1 billion, while internal management controls appear not to be applied. "These allegations point to failure by the Board to properly oversee management's decisions and actions in line with their statutory mandate," Scopa said. SCOPA Chairperson Songezo Zibi said the scale and seriousness of the complaints necessitate a thorough investigation. 'The volume of complaints and related documentary disclosures to the committee about the RAF make it necessary to examine them thoroughly, and make such recommendations as may be necessary to ensure that the institution does its work within legal and constitutional prescripts, and serves the public interest as intended. "An inquiry will also give everyone involved or implicated the opportunity to state their case under oath, and receive a fair hearing before the committee draws its conclusions.' ActionSA said it supported the decision for a parliamentary enquiry into the governance and operations of the RAF. "ActionSA has taken decisive steps. We have formally written to the Minister of Transport, Barbara Creecy, calling for the immediate dismissal of the entire RAF Board. Furthermore, ActionSA has tabled a motion in Parliament calling for a full debate on the corruption, incompetence, and wasteful expenditure that has come to define the RAF,". the party said. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
eNCA
19-06-2025
- Health
- eNCA
Public protector probes GP's poor service delivery and maladministration
JOHANNESBURG - The Public Protector has been reporting back on a series of high profile investigations in Gauteng. A provincial representative of the Protector's office, Vusumuzi Dlamini, appeared before the Gauteng Legislature's Standing Committee on Public Accounts. The Mayibuye school in Thembisa that was found to be a health hazard , the conduct of six public hospitals during the height of the Covid19 in 2020 were among matters he reported on.
Eyewitness News
10-06-2025
- Politics
- Eyewitness News
Minister Majodina says SA doesn't have a bulk water crisis, it's a supply problem
CAPE TOWN - Water and Sanitation Minister, Pemmy Majodina, said that the country does not have a bulk water crisis; rather, the supply of water is the problem. She said the billions of rand owed by municipalities to water boards could further exacerbate the provision of water. On Tuesday, Majodina appeared before Parliament's Standing Committee on Public Accounts (SCOPA) for the first time since the start of this administration. The department said that while there's currently enough raw water supply to meet national demands, there are deficits at the local level. Majodina said that of the 144 water operators in the country, 105 of them are performing dismally, hence the water shortages. 'There's no crisis. When it comes to bulk water supply, we do have, but when it comes to access of water through the taps, there's a challenge.' She added there's only so much intervention the national department can make to ensure local authorities supply communities with water. 'That is why we are bringing reforms, that there must be separation of powers. We cannot be a service authority as well as a service provider.' By the end of April, municipalities owed water boards R25 billion, and Majodina said they were simply not honouring agreements to pay up.
IOL News
28-05-2025
- Business
- IOL News
Collins Letsoalo placed on special leave as CEO of the Road Accident Fund amid corruption allegations
Collins Letsoalo placed on special leave as CEO of the Road Accident Fund amid corruption allegations Letsoalo, who appeared before the Standing Committee on Public Accounts (Scopa) this morning, was suspended with full pay. The Road Accident chief executive, Collins Letsoalo, has been placed on special leave. He has been implicated in several allegations of financial mismanagement and corruption, primarily centred around a controversial R79 million lease deal for the offices in Johannesburg. A preliminary report by the Special Investigating Unit (SIU) found that Letsoalo interfered with the procurement process by overturning a bid committee's recommendation to favour Mowana Properties, a losing bidder linked to the Government Employees Pension Fund, which ultimately secured the lease agreement.
