RAF Under Fire As Scopa Uncovers Dodgy Contracts and Exorbitant Legal Fees, South Africans Annoyed

• The Standing Committee on Public Accounts (Scopa) uncovered questionable payments and contracts at the Road Accident Fund (RAF)
• The RAF is alleged to have provided false information about legal expenditure to Scopa, and in some cases, failed to provide any details
• South Africans weighed in on the latest issue at the RAF, expressing frustration with the blatant misuse of funds and lack of accountability

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

GAUTENG – Damning allegations have been made against the Road Accident Fund (RAF), with the Auditor-General and South African Police Service (SAPS) now investigating some of the contracts awarded by the fund.

The RAF is not only in hot water over some of its decisions, but also for allegedly misleading Parliament’s Standing Committee on Public Accounts (Scopa). According to a memorandum tabled by Scopa, it was revealed that the RAF misrepresented some of its expenditures or failed to disclose them.

RAF is accused of providing false information

Scopa chairperson, Songezo Zibi, detailed in his memorandum how the RAF repeatedly provided “inaccurate, misleading, and/or false information” to Parliament, especially when it came to legal expenses. This was uncovered thanks to detailed contract records provided by a whistleblower, which showed that the RAF did not disclose the real amounts spent on law firms.

“Total payments to Malatji and Co in 2023/24 amounted to R126.4 million and not R15 million as reported by the RAF. Similarly, payments to Mpoyana Ledwaba Inc totalled R84 million, and not R14.8 million as reported to the committee,” Zibi noted.

He added that these were not minor errors but could be seen as an attempt to mislead the committee. He also noted that in some instances, the RAF didn’t even disclose when they made payments to a law firm, as was the case with the R30 million paid to Mashiane, Moodley & Monama in 2023/24.

RAF spends millions on media contracts

Zibi also noted that the whistleblower’s information indicated that the fund had two contracts, each worth R500 million, for media services. One contract is set to run until late 2027, while the other runs until late 2028, but the expenditure has already surpassed the agreed amount.

“Expenditure of over R650-million in two years, with companies whose websites reveal no information about their owners, directors or employees, is deeply concerning,” Zibi said.

The fund is also alleged to have awarded a multi-million-rand contract to a company that should never have been appointed. RAF also allegedly manipulated internal processes to cancel a legitimate tender for another company.

The matters have been handed over to the Auditor-General and SAPS for further investigation.

South Africans annoyed by Scopa's findings

South Africans weighed in on the misdemeanours committed by the RAF, expressing frustration at how much money was spent.

Winnie Mahlangu said:

“Wow, and the CEO did not mention these law firms at all. He was playing the race card.”

Seporo Tshebesebe added:

“That’s victims’ money. They are not even ashamed.”

Zanele Dlamini suggested:

“Because they eat with the lawyers.”

Zakhele King P Petse stated:

“No wonder this fund does not have money and cannot pay the victims. We do not have a government. Let's admit it.”

Netshituni Nkhane Walters said:

“So, this is the reason why our money is delayed. They pay themselves with our money. This is why the process takes so long.”

Tshidi Vee Mtshoeni added:

“This government really hates us. Like, what have we done to deserve this? Yassis. Every day there's a new story.”

Sam Taeli stated:

“Fraud and corruption will bring down this country. A banana republic.”

Source: Briefly News