Latest news with #SongezoZibi
Eyewitness News
16-07-2025
- Business
- Eyewitness News
Zibi warns dissolved board of RAF must be replaced with a capable one
JOHANNESBURG - Chairperson of Parliament's Standing Committee on Public Accounts (SCOPA) Songezo Zibi has warned that the dissolved board of the Road Accident Fund (RAF) must be replaced with one that is capable. Minister of Transport Barbara Creecy on Tuesday dissolved the board of the government-funded entity, citing governance and operational challenges. The board appeared before SCOAP earlier this year, where it was revealed, among others, that the head of legal does not have a law degree. The oversight committee launched an inquiry to investigate allegations of maladministration, financial impropriety and the misuse of public funds at the embattled entity. At the same time, RAF's CEO, Collins Letsoalo, was suspended earlier this year for alleged corruption and failure to appear before SCOPA. Zibi said the dissolution of the board came as no surprise. 'We've noted as a committee a number of underperformances by the board in overseeing the Road Accident Fund. We've highlighted the numerous vacancies in critical posts. The accumulation of default judgments that the Road Accident Fund does not defend that amount to R5 billion at the moment at a rate of up to 100 million per week. We had said in our committee that this board is failing so the decision is not surprising.' Zibi said the board must be replaced by one that is credible. 'It's important that whoever steps in on an interim basis is capable, experienced and strong-willed because it doesn't help to replace one weak and problematic board with another.'
IOL News
27-06-2025
- 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.'
News24
25-06-2025
- Business
- News24
Tough economy driving unethical practices in attorneys handling RAF claims, LPC tells Parly
Standing Committee on Public Accounts chair Songezo Zibi. Gallo Images/Jeffrey Abrahams Be among those who shape the future with knowledge. Uncover exclusive stories that captivate your mind and heart with our FREE 14-day subscription trial. Dive into a world of inspiration, learning, and empowerment. You can only trial once.
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.
The Citizen
24-06-2025
- Business
- The Citizen
Scopa launches inquiry into RAF misconduct claims
Whistleblower claims, governance failures, and vacant executive posts prompt Scopa to launch full inquiry into RAF operations. The Standing Committee on Public Accounts (Scopa) will investigate serious allegations of mismanagement, governance failures and financial misconduct at the Road Accident Fund (RAF). Scopa announced on Tuesday that it has resolved to initiate a comprehensive inquiry into allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct at the RAF. The committee said the decision comes after months of several unsuccessful attempts by Scopa to obtain truthful, complete information from the RAF Board and executive management. RAF board failed to cooperate and disclose key information – Scopa 'The committee cannot perform its work effectively if state entities do not provide it with complete and truthful information with adequate context and supporting information,' the chairperson said in a statement. Among the committee's concerns are insufficient background checks on executive and senior management appointments who are entrusted with access to and oversight of substantial public funds. ALSO READ: RAF and its comms head found to have defamed Sunshine Hospital This is despite having a troubling employment and disciplinary record that includes accusations of making careless financial management decisions. The committee is also concerned about the subsequent refusal by the RAF to disclose to them where such funds are kept and for what purpose. Scopa is additionally troubled by the prolonged failure to appoint essential officials, including a chief claims officer, head of claims operations, head of legal, chief corporate support officer, and head of people management. Prolonged failure to appoint essential officials This comes as the RAF faces significant financial losses—either due to action being taken when it shouldn't be, or inaction when action is needed. Some of the issues also include failures of governance with a direct impact on the rule of law and the authority and powers of parliament, as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people. ALSO READ: State capture allegations come back to haunt RAF acting CIO The committee also expressed concern over numerous whistleblower reports alleging supply chain irregularities involving more than R1 billion, noting that internal management appears to be failing to apply proper controls. The committee said these allegations point to failure by the RAF Board to properly oversee management's decisions and actions in line with its statutory mandate. The chairperson of Scopa, Songezo Zibi, said an inquiry will give everyone involved or implicated an opportunity to state their case under oath and receive a fair hearing before the committee draws its conclusion. Inquiry will take place after August recess '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,' Zibi said. The committee will approve the terms of reference on 1 July 2025, and the inquiry will take place after the August recess. ALSO READ: Two law firms get lion's share of RAF's R103m legal services spend The Association for the Protection of Road Accident Victims (APRAV) has welcomed Scopa's decision to initiate a full parliamentary inquiry after 'years of concern' about systemic mismanagement, growing dysfunction, and serious questions regarding financial and ethical oversight at the fund. 'This is a massive victory — not just for APRAV, but for every victim who has suffered silently under a broken and unaccountable RAF system,' said Pieter de Bruyn, speaking on behalf of APRAV. 'It is a long-overdue reckoning with a system that has failed too many for too long.' 'This is a massive victory' – APRAV As the inquiry process begins, APRAV called on victims, legal practitioners, former RAF employees and whistleblowers to come forward and share their evidence and experiences. 'Let this be the beginning of a new chapter for the RAF — one rooted in truth, accountability, and the collective will to do better,' said de Bruyn. NOW READ: RAF 'deliberately withholding' information from Scopa
