Barbara Creecy calls to expand SIU probe as new RAF board takes charge of governance
Image: GCIS
Minister of Transport Barbara Creecy has laid out clear and urgent expectations for the newly appointed interim board of the Road Accident Fund (RAF), tasking it with restoring governance, stabilising finances, and addressing long-standing operational failures.
IOL previously reported that the Cabinet appointed the new interim board, headed by former Treasury official Kenneth Brown, to immediately address the fund's deep-rooted governance and financial challenges.
Creecy said the interim board must act swiftly to close the governance vacuum that had crippled the RAF, emphasising the urgent need to fill critical executive vacancies and improve financial oversight.
"We stressed that the Interim Board must initiate a process of filling vacant executive positions that are critical to the mandate of the Fund. We also stressed to them that they must cooperate with current and future SIU investigations," Creecy said.
She stressed that the board is expected to tackle frequent default judgments that have increased the fund's legal liabilities, and to fully cooperate with ongoing investigations by the SIU.
"Colleagues will recall that there is a current SIU investigation at the Road Accident Fund, and following whistleblower reports that were given to us by the Chairperson of SCOPA, we have written to both the President and the SIU to ask them to expand the scope of their investigations".
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"As you know, we, as a Ministry, have already established a panel of independent experts to advise the stakeholders and the Board on the views of the stakeholders of the Road Accident Fund, on how to develop a sustainable operational and governance model at theentity, and to review the RAF's business processes and propose actionable recommendations".
The Minister also highlighted the Road Accident Benefit Scheme Bill, which she described as crucial to the fund's future. The bill aims to introduce a no-fault compensation system that will reduce lengthy legal disputes and provide a clear, defined schedule of benefits to accident victims.
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Daily Maverick
3 days ago
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Transport Minister Barbara Creecy has announced leadership changes across the Road Accident Fund, South African Airways and Transnet, moves she framed as part of efforts to enforce 'good governance' across transport entities. 'Good governance of our transport entities is central to their effective performance,' said Transport Minister Barbara Creecy on Friday, 8 August 2025, speaking in Pretoria. State-owned entities in the transport portfolio have faced prolonged financial instability, governance failures and operational bottlenecks, particularly within the Road Accident Fund (RAF), South African Airways (SAA) and week, the Cabinet approved the appointment of an interim board for the RAF for six months or until a new board is appointed, whichever comes first. Kenneth Brown, a veteran of the Development Bank of South Africa and National Treasury, will chair the interim board, with Nonhlanhla Mabusela-Aikhuere, a senior investment banker, as vice-chair. The previous board was dissolved on 15 July 'due to its failure to act in the best interests of the entity and to fulfil its fiduciary duties… It therefore became urgent and necessary to close the governance vacuum in the RAF leadership,' Creecy said at the time. The RAF has been in crisis for several years and its embattled CEO, Collins Letsoalo, was recently suspended due to staggering overspending and unqualified audits. Read more: The interim board's mandate aims to rectify these challenges. It's been tasked with providing strategic direction and restoring governance stability, addressing deficiencies such as 'frequent incurrences of default judgments against the RAF', filling critical executive vacancies, and cooperating with current and future Special Investigating Unit (SIU) investigations — the scope of which was recently expanded after whistleblower reports to Parliament's Standing Committee on Public Accounts. The Transport Department is also finalising the Road Accident Benefit Scheme Bill, which would introduce a no-fault system and a defined schedule of benefits as part of efforts to reduce contingent liabilities. Slow but sure take-off In contrast to the RAF, South African Airways (SAA) has been showing slow signs of a turnaround, finding itself debt free and opening up both local and international Cabinet approved the appointment of a new permanent board, with experienced business rescue practitioner Sedzani Faith Mudau serving as chairperson and finance professional Fathima Gany as deputy. Creecy noted that SAA had returned to profitability over the past two years, though the most recent audit reflected a slight deficit, and credited the outgoing interim board for leading SAA from its 2021 business rescue exit to being a stable airline once again. While the airline — and the broader aviation industry — has faced challenges, the success of SAA and the broader aviation industry remains a crucial economic expert and author of Plane Talking, Linden Birns, told Daily Maverick that Singapore 'became a magnet for financial and services industries through… air connectivity', and that an SAA turnaround could play a similar role in unlocking further economic growth in South Africa. The ministry expected the new board to use its 'debt-free balance sheet and ring-fenced liquidity' to expand the fleet from 20 to 50-plus aircraft by 2030, funded through capital raising, internally generated cash, operating leases and market funding, said Creecy. Transnet changes At Transnet, which has seen almost as many challenges as the RAF regarding allegations of mismanagement and corruption, Creecy appointed Khulekelwe Glynnis Mbonambi as a non-executive director for the remainder of the board's first term, which expires in July 2026. A chartered accountant, she 'brings much needed financial skill to the organisation', said Creecy. The minister said this was 'especially important today as we navigate Transnet towards financial stability… important determinants for gaining required operational efficiencies so desperately needed in freight logistics, port services, contributing to trade growth and job creation'. The way ahead While the appointments close governance gaps at the top of these entities, challenges remain. For the RAF, sustainability of the funding model, delivery on governance reforms, and progress of SIU investigations and the Road Accident Benefit Scheme Bill will be key tests. For SAA, the fleet expansion plan hinges on capital market appetite and maintaining operational independence without sovereign guarantees. At Transnet, operational bottlenecks and debt challenges were not addressed in detail at the briefing. Creecy's appointments signal movement — if not rapid movement — in replacing underperforming boards and an intent to stabilise governance. The next measure of success will be whether these changes deliver measurable improvements in performance — should they do so, there will be both measurable and visible impacts for South Africa. DM
IOL News
3 days ago
- IOL News
Barbara Creecy calls to expand SIU probe as new RAF board takes charge of governance
Minister of Transport Barbara Creecy has laid out clear and urgent expectations for the newly appointed interim board of the Road Accident Fund (RAF), Image: GCIS Minister of Transport Barbara Creecy has laid out clear and urgent expectations for the newly appointed interim board of the Road Accident Fund (RAF), tasking it with restoring governance, stabilising finances, and addressing long-standing operational failures. IOL previously reported that the Cabinet appointed the new interim board, headed by former Treasury official Kenneth Brown, to immediately address the fund's deep-rooted governance and financial challenges. Creecy said the interim board must act swiftly to close the governance vacuum that had crippled the RAF, emphasising the urgent need to fill critical executive vacancies and improve financial oversight. "We stressed that the Interim Board must initiate a process of filling vacant executive positions that are critical to the mandate of the Fund. We also stressed to them that they must cooperate with current and future SIU investigations," Creecy said. She stressed that the board is expected to tackle frequent default judgments that have increased the fund's legal liabilities, and to fully cooperate with ongoing investigations by the SIU. "Colleagues will recall that there is a current SIU investigation at the Road Accident Fund, and following whistleblower reports that were given to us by the Chairperson of SCOPA, we have written to both the President and the SIU to ask them to expand the scope of their investigations". 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 "As you know, we, as a Ministry, have already established a panel of independent experts to advise the stakeholders and the Board on the views of the stakeholders of the Road Accident Fund, on how to develop a sustainable operational and governance model at theentity, and to review the RAF's business processes and propose actionable recommendations". The Minister also highlighted the Road Accident Benefit Scheme Bill, which she described as crucial to the fund's future. The bill aims to introduce a no-fault compensation system that will reduce lengthy legal disputes and provide a clear, defined schedule of benefits to accident victims.
IOL News
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Commitment to 'clean governance' sees national Transport department achieve audit milestone
Transport Minister Barbara Creecy has welcomed the clean audit the national Transport Department received from the Auditor-General South Africa (AGSA). Image: GCIS The Department of Transport has received a clean audit from the Auditor-General South Africa (AGSA) for the 2024/25 financial year, the first in the department's 31-year history. Minister of Transport Barbara Creecy and Deputy Minister Mkhuleko Hlengwa welcomed the outcome and said it marked a significant shift towards sound governance. 'This is a step in the right direction towards a fully accountable and clean administration,' they said in a joint statement issued on Sunday. According to the AGSA's report, the department submitted its Annual Financial Statements (AFS) on time and without any material misstatements. Furthermore, the Auditor-General did not find any significant deficiencies in the department's financial management processes and noted that there were no findings on the completeness of the performance indicators used for planning and reporting. Creecy and Hlengwa attributed the result to 'the department's commitment to clean governance and accountability,' adding that the department's leadership had taken internal assurance processes seriously. They emphasised that management had ensured that 'assurance providers are appropriately resourced and capacitated,' and had responded positively to audit recommendations by addressing concerns 'timeously, through effective audit action plans.' The department also credited its proactive engagement with the Auditor-General's office, noting that preparing for the audit process in advance had ensured 'smooth seamless execution.' The ministers said the clean audit outcome was a result of 'a combined effort and assurance practice from all functions within the department, from Management efforts to Risk Management, Internal Audit, and oversight Committees – especially the Audit Committee.' They also acknowledged the Transport Portfolio Committee in Parliament, which they said had played a key oversight role. 'The role of the Transport Portfolio Committee ensured that the Department is accountable to Parliament,' the statement read. The AGSA's clean audit opinion is based on an assessment of financial statements, internal controls, and performance information, and is seen as a benchmark of good governance in the public sector. The Department of Transport's clean audit follows years of public concern over irregular expenditure and audit disclaimers in various state entities, with Creecy and Hlengwa positioning the result as evidence of institutional reform within the department. THE MERCURY
