Latest news with #Zibi
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
- Politics
- IOL News
Scopa to hold inquiry to investigate maladministration at the Road Accident Fund
Scopa chairperson Songezo Zibi said they have decided to institute a parliamentary inquiry into the affairs of the troubled Road Accident Fund (RAF). The Standing Committee on Public Accounts on Tuesday said it has decided to institute a parliamentary inquiry into the affairs of the troubled Road Accident Fund (RAF). Scopa chairperson Songezo Zibi made the proposal that the committee look into matters related to maladministration and allegations made about the institution. 'There are lots of allegations and counter-allegations. Everybody involved needs to get their opportunity to present their side of the story before the committee. We need to give everyone an opportunity and to do so under oath,' Zibi said. Briefing the MPs, Zibi referred a memorandum to the committee's secretariat to prepare on issues that have beset the RAF. 'The ministry and RAF sent enormous volume of documents. We synthesise them and prepared a memo and shared with members. The only information redacted is critical whistle blower information.' In his memorandum, Zibi cited issues related to the organogram and vacancies at the RAF. He 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. DA Patrick George Atkinson said the situation at the RAF was deeply concerning. "The kind of amounts we talk of could dwarf anything this committee has dealt with. It could make SAA look like a tea party by the amounts that are involved and the potential liability created for the state," Atkinson said. "If we can get to the bottom of the corruption and waste of money, the increase in a fuel levy might not even be necessary. The public pays for the corruption and maladministration in RAF. It is critical we get the bottom of it," he added. Atkinson noted that there had been discrepancies in what they were told by the RAF and what the whistle-blowers were revealing. ANC MP Helen Neale-May said there were concerns around governance and conduct of RAF with serious allegations of abuse of power, financial mismanagement and the disregard of legal procedures. "We have no other choice and let's see from them. It is just unbelievable," Neale-May said. His colleague Gijimani Skosana said the inquiry will assist stakeholders within and outside RAF to tell their stories. "Everyone will be speaking under oath, unlike now where we invite them for a committee conversation," Skosana said. UDM's Thandi Nontenja said the RAF seemed to be a law unto itself. "We really support your view that there must be an inquiry. Beside contradicting themselves, they are not forthcoming with information that is requested," Nontenja said. "They are hiding something. It is not something good. I hope that having an inquiry will give us a way to get to the root of what is really happening there. It is amazing they get away with everything," she added. MK Party's David Skosana said issues at the RAF touch a nerve of many people in the country and there was a lot of interest there. "When the CEO told us they saved over R20bn some of us applauded to say he has done well. The fact is that the CEO and team saved this country over R20m," Skosana said before questioning why certain names of companies were not named in the memorandum. His colleague Kwenzokuhle Madlala said he did not believe the RAF was performing optimally or that it has proper governance. "We see total collapse in all the institutions and RAF is not an exception," he said. EFF MP Veronica Mente did not see the need to institute an inquiry in RAF as she believed the matters did not warrant an inquiry. She said there were non-performing municipalities and issues of service delivery, as an example, that could be pursued. After the parties motivated for and against the parliamentary inquiry, it was decided to push ahead with it. Zibi said the committee secretariat will draft terms of reference to be considered by Scopa on July 1 and then use the period afterwards to prepare for the inquiry. He stated that once they completed the inquiry, they will consider all written evidence and testimony and then write a report with recommendations for the House.
IOL News
16-06-2025
- Politics
- IOL News
'We will not be silent': RISE Mzansi marks youth day with bold call to action for SA's youth
RISE Mzansi commemorates Youth Day at the Hector Pieterson Memorial, vowing to continue the fight for dignity, safety, and opportunity for young people. Image: File RISE Mzansi has vowed to continue fighting for the issues that affect South Africa's youth, drawing a direct line between the struggles of 1976 and today's challenges. Speaking at the Hector Pieterson Memorial during a wreath-laying ceremony on June 16, RISE Mzansi National Leader Songezo Zibi MP delivered a scathing indictment of the country's failure to protect and empower young people nearly five decades after the Soweto uprising. 'Today, we stand here, 49 years since Hector Pieterson, Tsietsi Mashinini, and scores more bled and lost their lives for the liberation of this country and its young people. Their fight is far from complete, and the scars of that era still remain,' said Zibi. He said that while legislation like the Basic Education Laws Amendment Act exists, the current school environment remains hostile and dangerous. 'In the last year, there were 42 cases of rape; 96 cases of attempted murder; 1,214 cases of assault GBH; and 376 cases of rape at places of learning,' he stated. Zibi said RISE Mzansi had formally asked the Minister of Basic Education to deliver an Executive Statement in Parliament on June 24 to account for efforts being made to improve school safety and quality. 'The case of little Cwecwe is not an isolated one,' he added, referencing recent tragic incidents involving children. Beyond education, Zibi tackled youth unemployment head-on, condemning the government for presiding over a crisis where 'the youth unemployment rate is close to 50%, or just over 62% if you include young people who have given up on looking for work.' 'These young people are you; the ones gathered here today in the name of Hector Pieterson; they are our family members,' he said, adding that the current R370 Social Relief of Distress (SRD) grant should be transformed into a R35-billion investment in youth economic development. 'Let us fund the future, rather than plastering over our current problems.' He also raised concerns about a 'silent crisis' ravaging communities: gambling addiction. 'You look left, you look right, you see gambling advertising on TV, during sports matches, on social media, and even at Home Affairs,' said Zibi, warning that the addiction among young people aged 25 to 35 is spiraling. RISE Mzansi also highlighted the growing food insecurity affecting over 20 million South Africans, particularly children. 'Twenty-three percent of children suffer from severe hunger, which results in developmental problems such as stunting,' the party said, emphasizing the role of MEC Vuyiswa Ramokgopa in addressing the issue through food empowerment initiatives. Turning to the upcoming National Dialogue, RISE Mzansi expressed concern about the reported R700-million budget. 'The touted R700-million price-tag appears to be excessive,' Zibi said, saying the party would use its parliamentary oversight to ensure financial accountability. The party insists that the dialogue must 'address issues of justice in all its forms' and not 'escape the issue of ethical leadership across society, political, business, civil society, and academia.' 'RISE Mzansi will continue to fight for the South Africa we all deserve, and this cannot be done without working with and listening to young people,' Zibi said. IOL News
IOL News
02-06-2025
- Automotive
- IOL News
Driving licence printing machine fixed but huge backlogs remain
The Department of Transport has repaired the driving licence card printing machine after months of downtime, but a significant backlog of unprinted cards remains. Image: File Millions have been spent on repairing and maintaining the driving licence card printing machine. The Department of Transport announced earlier last month that the driving licence printing machine was fixed and operations have resumed. The machine had been inoperative since February 5, resulting in a backlog of 747,748 unprinted cards. To reduce the backlog, the Department of Transport's Driving Licence Card Agency extended the working hours of its staff members. In light of this, in a parliamentary question and reply, Rise Mzansi leader Songezo Zibi asked Transport Minister Barbara Creecy about the number of times the machine broke down and how much it cost to repair it. 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 ✕ Zibi then asked how many employees it takes to operate the machine and how much overtime pay has been paid to employees due to lost printing time because of machine breakdowns. Zibi also asked Creecy if there was progress in acquiring a new card machine. Creecy said the backlog of driving licences as of May 15 was estimated at 733,000 cards. Creecy revealed the machine's major breakdowns in the past financial year are as follows: 2022/23 - 26 working days 2023/24 - 48 working days 2024/25 - 17 working days 2025/26 - 38 working days Over the same period, repairs and maintenance costs: 2022/23 - R9,267,862,33 2023/24 - R1,651,772,57 2024/25 - R544,747,64 2025/26 - R624,988,10 (to date) Overtime payment, over the last few financial years, has been: 2022/23 - R1,435,376,79 2023/24 - R1,608,102,52 2024/25 - R1,351,473,78 2025/26 - R0,00 Creecy said it takes four people to operate the machine. About progress made with the process to acquire a new driving licence card printing machine, Creecy said: 'The Minister has directed that a declaratory order be sought from a competent court on the tender to acquire a new machine, in order to ensure that no further irregular expenditure occurs.'
The Citizen
29-05-2025
- Business
- The Citizen
RAF ‘deliberately withholding' information from Scopa
The SIU tells us that one law firm has received an incredibly disproportionate portion of the work allocated by the RAF – Scopa chair. What is the RAF hiding, and why does its R1.2m-a-year chair not think it 'important enough' to make sure Scopa is given the information it asked for? Picture: Moneyweb The Road Accident Fund (RAF) has been accused of deliberately withholding information from Parliament's Standing Committee on Public Accounts (Scopa) about the top 10 law firms to receive briefs and payments from the fund. Scopa chair Songeza Zibi said on Wednesday he has asked for this information twice, the first time on 6 November 2024. He now believes 'this information is being deliberately withheld from the committee for improper reasons'. 'In the intervening period, the SIU [Special Investigating Unit] came to brief the committee and one of the things that they told us is that one of the law firms has received an incredibly disproportionate portion of the work allocated by the RAF. 'We do not know who that law firm is but you can see why that information is pertinent.' He said he cannot understand 'why it is easy to provide the plaintiff information but it seems impossible to provide the corporate legal services information' when the committee has asked for it in writing and in the sitting. Zibi said one of the things he is concerned about is that there are names of law firms that appear on both the lists. ALSO READ: RAF CEO placed on special leave with full pay, as MPs grill fund What does the RAF chair say? RAF chair Lorraine Francois apologised for the information not being provided and assured the committee it will be provided. Zibi said his difficulty is that Francois was in the meeting and knew Scopa asked for this information, which has not been provided. Zibi said it would not be unfair to hold Francois responsible for the failure to provide this information because the board is the accounting authority. Francois said the RAF board secretary takes note of Scopa's requirements but they always assume that it is the responsibility of the RAF CEO and executive to put this information together. Controversial RAF CEO Collins Letsoalo was placed on special leave with full pay and benefits by the board on Tuesday as a precautionary measure, but it was stated that this did not constitute disciplinary action. ALSO READ: R25.5 billion deficit over five years — Can RAF afford to pay out claims? Francois said most of the time, the information requested gets submitted directly to Scopa. 'We are a non-executive board so we don't review everything that comes here directly. 'That is the responsibility of the executive. Now I take full accountability and will ensure this happens. But to respect the request of this committee, I will now get to that level to make sure we will provide this information,' she said. Scopa member Mark Burke of the DA took issue with her answer and asked her what her annual compensation is. Francois said it is about R1.2 million. 'You get paid R1.2 million, which is the equivalent of a parliamentary salary and in your mind it's too operational for you to respond to the [request] for information,' said Burke. 'That [it] is beyond the scope of your work. Does that seem reasonable to you?' Zibi said he would answer this question. 'You [Francois] didn't think it was important enough because I have raised it twice and you simply didn't bother to check. 'We are not asking you to be operational. I am asking you to ensure that the needs of the committee are met by way of information,' he said. ALSO READ: RAF national crisis demands urgent action – expert 'Terminate the board immediately' Scopa member Alan Beesley of ActionSA followed up by stating that he found Francois's response dumbfounding. 'I saw the list that [Zibi] asked for. It's not an extensive list,' said Beesley. He requested that Deputy Minister of Transport Mkhuleko Hlengwa write letters of termination immediately to the RAF board because it is acting with immunity at the moment and treating parliament with disrespect, which is totally unacceptable. Acting RAF CEO Phathutshedzo Lukhwareni said a panel of 43 law firms was appointed by the RAF in December 2023, but only 19 were briefed and paid during the 2023 and 2024 financial years 'at the time of preparing the report'. Lukhwareni said a total R6 million was paid to these law firms in 2023, and around R104 million in 2024. He said it is a panel (of law firms) and obviously the selection takes place depending on the complexity of the matter. ALSO READ: RAF at risk of imploding No state security clearance Scopa was also told that not a single member of the RAF's board or senior executive has a security clearance from the State Security Agency (SSA). Lukhwareni said all the forms have been submitted to the SSA for the vetting process and interviews have been held with some of the executives but 'from here on it's beyond our control from a RAF perspective and SSA is responsible'. Zibi said something does not match because on 16 October 2024 he had an exchange with Francois about the vetting of officials and one official, Letsoalo, was said to be vetted. Zibi pointed out that Letsoalo said in March 2025 that he had been vetted – and the difference between what he said then and the state of affairs now 'means for the second time he lied to the committee'. 'I asked him about the treasurer at the RAF and he [also] lied about that.' Scopa member Patrick Atkinson of the DA said Letsoalo – who was initially acting CEO of the RAF and has now been CEO for five years – has been without a security clearance for seven years. Atkinson said the problem with that is that (without clearance) Letsoalo has not been legally appointed to that position and the question then is how would he have the authority to take the legal action he has against the Auditor-General (AG). ALSO READ: Expert accuses RAF of misrepresenting itself and its purpose The RAF unsuccessfully applied to review and set aside the AG's disclaimer of the fund's 2020/2021 annual financial results and to declare the disclaimer invalid and unlawful. The AG issued the disclaimer because the RAF used an accounting standard it was not permitted to use. 'I understand the court might give him six months to get his security clearance but not seven years,' Atkinson said. 'If he has been operating for seven years without a security clearance, it raises a massive legal issue about a whole variety [of issues] about the accounting principles, not paying out medical aids and foreigners and a whole variety of board minutes which are illegal.' Zibi said he would have to take legal advice on that and would not hold the Department of Transport or RAF responsible for the tardiness of the SSA. He said Scopa will take that up with the responsible minister, but the committee needs to work out if Scopa was misled when the CEO told the committee that he had been vetted. This article was republished from Moneyweb. Read the original here.
